* Silver climbs 4 percent, gold up 1 percent
* Oil extends sharp overnight gains
* Copper, steel rise on China demand hopes
* Coming Up: ECB policy meet outcome, US weekly jobless
claims
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, April 21 (Reuters) - Silver surged nearly 4
percent on Thursday, hitting an 11-month top and lifting gold
with it, as commodities rallied on firmer oil prices and
optimism over the Chinese economy.
Crude prices rose on Thursday as the International Energy
Agency said that 2016 would see the biggest fall in non-OPEC
production in a generation, helping rebalance a market that has
been dogged by oversupply. O/R
Asian shares climbed to 5-1/2-month highs and the dollar
retained gains from the prior session, but the risk appetite
failed to dent the safe-haven appeal of precious metals.
MKTS/GLOB
Spot silver XAG= rose 3.9 percent to $17.595 an ounce, its
highest since May 2015. Gold XAU= rose as much 1.3 percent to
a session high of $1,260.
"There is more and more money coming into commodities," said
a trader in Shanghai.
"Commodity prices of steel and other industrial metals are
up sharply as Chinese economic data has become much better.
Precious metals are rising with it, especially silver," he said.
Silver, used widely in manufacturing, has outperformed gold
in recent days, helped by a break through chart resistance at
its late October high on Tuesday and upbeat data from China.
Recent data from China has showed a surge in new debt
fuelling a recovery in factory activity, investment and
household spending. This has largely boosted industrial
commodities.
London copper hit its highest in almost a month on Thursday,
while Shanghai rebar jumped 9 percent to its highest since
September 2014.
"Silver and the PGMs (platinum group metals)... will
outperform gold and enjoy positive fundamentals," said HSBC
analyst James Steel. "Investors recognise these metals may be
undervalued to gold."
Platinum XPT= rose 1 percent on Thursday, trading near its
highest in eight months. Palladium XPD= climbed to $601.36 an
ounce, its highest in a month.
Bullion traders will be eyeing an ECB meeting later in the
session for any impact on the dollar. The ECB is not expected to
make any policy change at its rate-setting meeting on Thursday.
The focus will also be on U.S. economic data that could
affect the Federal Reserve's monetary policy.
PRICES AT 0649 GMT
Metal Last Change Pct chg
Spot gold 1258.1 14.8 1.19
Spot silver 17.475 0.545 3.22
Spot platinum 1027 11.65 1.15
Spot palladium 596.45 2.95 0.5
Comex gold 1260 5.6 0.45
Comex silver 17.51 0.375 2.19
COMEX gold and silver contracts show the
most active months