NEW YORK — Gold rose to another record high Tuesday as investors continue to seek refuge from volatility in other markets.
The price of gold for August delivery jumped as high as US$1,254.50 an ounce in early trading before pulling back slightly. Gold ended the day up $4.80 at $1,245.60 an ounce.
Carlos Sanchez, an analyst with CPM Group in New York, said investors continue to worry about the strength of the global economy, particularly in Europe where many countries are facing mounting debts and are trying to cut their budgets.
Fitch Ratings warned Tuesday that the United Kingdom is facing “formidable” fiscal challenges.
That caution comes as Greece, Spain, Portugal and Hungary are already grappling with rising deficits and, in several cases, civil unrest as they try to implement austerity measures.
During the past month, gold became a staple for investors seeking alternatives to holding currencies like the euro, which has been hammered this year on waning confidence.