week highs in Europe Friday and silver its strongest since 1980 as growing unrest in the Middle East lifted interest in precious metals, though another reserve requirement hike from China curbed gains. Gold's bounce-back after it fell more than 6 percent in January has wrong footed some investors who were waiting for lower price levels to buy into the market, analysts said. Spot gold was at $1,385.25 at 1040 GMT against $1,383.30 late in New York Wednesday, while US gold futures for April delivery rose 40 cents to $1,385.50. Silver was at $31.73 against $31.74, having hit a high of $31.95, a 31-year peak in earlier trade. Gold earlier hit a five-week peak at $1,388.15 an ounce. It briefly pared gains after China said it was raising lenders' reserve requirements by 50 basis points, but remains firmly underpinned by investment interest in precious metals. "(There has been) a remarkable move in silver, which has helped gold back toward $1,400," said Saxo Bank senior manager Ole Hansen. Silver remains the chief focus of the precious metals complex, however. "The investor spotlight is firmly focused on silver following recent headlines about producer hedging, in light of bullish industrial demand prospects, and due to the general tightness in the market, which last month flipped silver forwards into backwardation," said Swiss bank UBS.
