World silver prices surged higher again yesterday, but a bout of nerves saw them close well under peak midday levels. Gold tracked moves in silver but to a much lesser extent while in other commodity markets white sugar, cocoa and freight rates hit fresh lows. In industrial metals, copper fell and lead and zinc did the opposite.

Dealers said silver, which had been rallying on the back of news that US billionaire investor, Mr Warren Buffett, had bought 20 per cent of the world's estimated annual supply, had lost ground after heavy buying in the morning.