Gold Rises to Close at Record as Stocks Fall Amid Debt Concerns

Gold futures rose, closing at a record $1,259.30 an ounce, as a slump in equities spurred demand for the precious metal as an alternative investment.

The price reached an intraday high of $1,261.60 as stocks in Asia, Europe and the U.S. fell on heightened concern that the global economy will struggle. The record was $1,266.50 on June 21. The euro dropped as much as 1.4 percent against the dollar as an industry group said Germany’s 10 largest banks may need fresh capital to meet new regulations.

“Gold is back in vogue with the stock-market weakness,” said Adam Klopfenstein, a senior market strategist at Lind- Waldock in Chicago. “People want protection from a downdraft in stocks. You’re seeing a lot of the flight-to-quality bid come into gold.”

Gold futures for December delivery closed up $8.20, or 0.7 percent, at 1:39 p.m. on the Comex in New York. The previous record settlement was $1,258.30 on June 18.

The price has gained 15 percent in 2010. The metal had climbed for nine straight years. (more)