Gold futures topped a six-session winning streak with a nominal record Tuesday, defeating a shaky start with support from ongoing worries about the euro-zone debt crisis.
Gold for August delivery gained $13.10, or 0.9%, to settle at $1,562.30 an ounce on the Comex division of the New York Mercantile Exchange. That easily ousted a previous settlement record of $1,557.10 an ounce on May 2.
The metal had earlier wavered between small gains and losses, but found support from concerns the European sovereign-debt crisis threatened to engulf Italy and Spain — larger economies than Greece, Ireland and Portugal, all of which have received financial aid.
Nowadays investors and traders are gravitating towards tangible assets. Gold is traditionally seen as a storer of value in uncertain economic conditions.
Market players are increasingly fearful that the debt crisis could spread to Italy. That is one of the main factors that is helping underpin gold prices.
Silver lagged, taking its cues more from concerns the situation in Europe could take its toll on the global recovery and, by extension, dampen the need for the metal, which has several industrial applications.
The sovereign-debt doubtfulness brought by Europe’s difficulties have provided a boost to gold prices in spite of the typical seasonal weakness in demand.
Physical demand has proven to be responsive to falling prices in the event investors’ interest diminishes, something that would provide an extra layer of support for the metal.
