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* Silver climbs nearly 3 percent, gold up 0.6 percent

* Oil extends sharp overnight gains of around 4 percent

* Copper, steel rise on China demand hopes

* Coming Up: ECB policy meet outcome, US weekly jobless claims

SINGAPORE, April 21 Silver surged nearly 3 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.

Oil jumped 4 percent overnight after data showed a smaller-than-expected increase in U.S. crude inventories, and added to those gains on Thursday, buoying sentiment.

Asian shares held near 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.

Spot silver soared 2.8 percent to $17.397 an ounce, its highest since May 2015. Gold rose as much 0.6 percent to a session high of $1,251.01.

"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.

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 7 percent to its highest since September 2014.

Platinum rose 1 percent on Thursday, trading near its highest in eight months. Palladium held near 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.

The metal has an immediate resistance at 1256/58 (Apr 19 & 20 high) and 1260/1262.77 (round number/ Apr 12 High). Meanwhile, the support stands at 1243/42 (10-DMA/ 1h 200-SMA) below which doors could open for 1237/34 (50 & 20-DMA).

Reference: Reuters, FXStreet