LONDON, March 27: Silver reached a new 22-year peak on Monday on persistent hopes that a proposed exchange-traded fund will prompt significant demand for the precious metal.

Other metals also extended gains, with palladium surging to a two-year peak and gold rising to three-week highs.

Spot silver rose as high as $10.86 an ounce, its highest since September 1983, before easing to $10.85/10.88.

Spot gold increased to a three-week high of $563.50/564.40 an ounce, up from $560.00/560.90.

Taiwan’s first gold futures contract closed firmer on the first day of trade on Monday, with investors watching to see if volumes would be high enough to attract continued interest.

Analysts said comments by a Bank of China official that the country should use part of its fast-growing foreign exchange reserves to buy gold, were also positive for the market.

—Reuters