SANDY SHORE, AP Business Writer
RTGAM



Updates with additional details, settlement prices.

Silver prices hit the highest level in nearly 31 years Friday on expectations of stronger demand and the metal's appeal as a relatively safe investment in times of uncertainty.

Silver prices climbed to $32.835 an ounce during trading before easing back to settle up 2.3 percent on the day. It was the highest price since silver settled at $32.90 an ounce on March 7, 1980, but well below that price after accounting for inflation.

Global concerns drove many commodity prices during the day.

Troops in Bahrain confronted protesters calling for an end to the country's monarchy. In Libya, Moammar Gaddafi's regime deployed security forces and warned citizens against joining the unrest in which dozens of protesters have been killed. Protests also continued in Yemen.

The uncertainty about what will come next for the region benefited gold and silver because of their safe-haven appeal. Oil prices rose as traders worried about potential oil supply disruptions.

Meanwhile, China ordered its banks to hold back more money as reserves in its latest effort to control inflation. The government has raised interest rates and reserve levels several times, but analysts expect the inflation rate to continue to climb through midyear as demand outstrips food supplies.

That benefited gold and silver but hurt soybeans on concerns that demand may wane.

Silver has been rising consistently since late January on more evidence of global economic growth, particularly in emerging markets. The metal has a variety of uses, from jewelry and silverware to consumer electronics and solar energy.

"It is certainly getting benefit from the combination of the global economic recovery along with the buying interest that you're seeing on the inflationary, precious metals, safe-haven side," said Dave Meger, vice president of metals trading at Vision Financial Markets.

Silver for March delivery added 72.6 cents to settle at $32.296 an ounce. April gold gained $3.50 to settle at $1,388.60 an ounce.

In other metals contracts for March, copper fell 0.2 cent to settle at $4.482 a pound and palladium rose $14.70 to $857.70 an ounce. April platinum fell 70 cents to settle at $1,843.30 an ounce.

In agricultural contracts for March, wheat fell 28.5 cents to settle at $8.2225 a bushel, corn fell 3 cents to $7.0975 a bushel and soybeans lost 36.5 cents to $13.68 a bushel.

Energy contracts were mixed. Benchmark oil for April delivery rose 87 cents to settle at $89.71 per barrel on the New York Mercantile Exchange.

In other Nymex trading, heating oil fell 1.95 cents to settle at $2.7129 a gallon and gasoline rose 2.36 cents to $2.5513 a gallon. Natural gas rose 0.8 cent to settle at $3.876 per 1,000 cubic feet.