Daily Gold Update

Source:Marketwatch

New York— Gold futures carved out a closing record above $1,220 an ounce Tuesday as the long-term implications of the European Union's rescue package and its impact on the euro lured investors into safe-haven assets such as gold. Gold's rise contrasted with U.S. stocks, which struggled to hold to mild gains, and a more modest rise for oil. Gold for June delivery, the most active contract by volume and open interest, added $19.50, or 1.6%, to close at $1,220.30 an ounce on the Comex division of the New York Mercantile Exchange. That was a record settlement for the gold contract, according to the exchange.

Intraday, the contract rose as high as $1,225.3, brushing closer to its all-time record high of $1,226.40 intraday on Dec. 3. On that day, it settled at $1,217.40, according to the futures exchange. "The rise reflects doubts about whether fringe euro-zone economies can reduce debt as well as lingering concerns about a possible contagion," said Ross Norman, a gold trader at TheBullionDesk.com. Relief over the EU's nearly $1 trillion plan to back debt-strapped nations in the euro zone waned as investors weighed the impact of pumping more cash into the global economy, already awash in liquidity as major countries have held benchmark rates at record lows. Some investors fear increasing government outlays will weigh on the value of currencies, making hard assets more valuable. See full story.