Gold and silver rise together, Silvercorp Metals (SVM.US) closes over 7%

Silvercorp Metals (SVM.US) rose 7.43% on Friday and continued to rise more than 2% overnight. On the news, the price of gold and silver continued to soar, with gold setting a new record high and silver breaking the $34/ounce barrier.

Data showed that the price of spot gold surged to a record high of $2731.96/ounce, driven by safe-haven demand and expectations of Chinese stimulus, while spot silver hit an intraday high of $34.107/ounce, its highest since December 2012.

Bank of America also recently published a report, saying it was bullish on gold. Michael Hartnett, chief strategist, noted that the Fed was determined to cut real interest rates over the next few quarters, and investors only needed to hedge against the threat of inflation and the devaluation of the dollar. Therefore, the strategist of Bank of America concluded that gold would far exceed $3,000/ounce.

According to public information, Silvercorp mainly acquires, explores, develops and produces silver, gold, lead, zinc and other non-ferrous and precious metal mines, and has become one of the largest silver and lead-zinc producers in China. The strong price of precious metals such as gold and silver is expected to continue to drive Silvercorp's share price higher.