Oil N' Gold Focus: Demands For ETFs Continue To Drive Precious Metals' Rallies

Gold price remains strong at 936 level in European morning. Seeing the Fed's asset buying program likely cause inflation in the medium- to long-term, investors are pouring funds to gold and other precious metals, particularly in forms of ETFs. Assets in the SPDR Gold Trust climbed 1.4% to a record 1 084.33 metric tons yesterday.

Among other precious metals, silver also rebounds to 12.84 after plummeting to 11.89 yesterday( -5.8%). Silver's performance has outperformed that of gold since 2009. Year-to-date, silver price has risen 12% while gold gained 5%. Compared with 10% in gold, investment demand contributed only 7% to total demand in silver. Although we saw robust increase in ETF and COMEX futures/options in silver since collapse of Lehmann brothers, the growth still lacks that of gold.