Gold hits new record high

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Gold prices climbed to a new record high Tuesday as Europe's debt troubles sparked demand for perceived safe havens, like the precious metal, and investors hedged against inflation.

What prices are doing: Gold for August delivery rose $5.70 to settle at a record $1,246.50 an ounce. Earlier in the day, it reached an intraday trading record of $1,254.50 an ounce.

gold.png

What's moving the market: Investors remained wary about the global economic recovery amid Europe's ongoing sovereign debt problems. In turn, they look to gold and other low-risk investments, which are attractive during times of economic uncertainty, as safe bets.

The precious metal's price has jumped 13% this year.

Gold prices also got a boost from investors who believe Europe's fiscal problems will subside and are instead worried about rising prices. The Federal Reserve's loose monetary policy has some traders worried about inflation.

What analysts are saying: "On one hand you have the possibility of additional problems in Europe going forward. And if Europe implodes, gold prices will continue to rise sharply higher," said Tom Pawlicki, precious metals analyst at MF Global.

"If the European problems go away, gold will still trade higher based on the inflation outlook," he added. "Gold is the perfect hedge against inflation. When the dollar loses its value, gold has been seen as the alternate currency since it holds its value."  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.27%4.22%
15 yr fixed3.27%3.27%
5/1 ARM3.35%3.48%
30 yr refi4.23%4.20%
15 yr refi3.25%3.25%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,086.63 -26.91 -0.16%
Nasdaq 4,473.70 0.00 0.00%
S&P 500 1,987.01 3.48 0.18%
Treasuries 2.46 -0.00 -0.08%
Data as of 2:44am ET
Company Price Change % Change
Apple Inc 97.19 2.47 2.61%
Facebook Inc 71.29 2.02 2.92%
Microsoft Corp 44.87 0.04 0.09%
EMC Corp 28.75 0.23 0.81%
Bank of America Corp... 15.52 0.00 0.00%
Data as of Jul 23

Sections

McDonald's is standing by a troubled meat supplier, even after allegations the company was selling tainted and expired meat. More

With cost-cutting at the U.S. Postal Service more letter carriers are working later and later to deliver your mail. About 38% of mail is delivered after 5 p.m. in cities nationwide. And areas like Atlanta, Washington and South Florida, it's 70%. More

Like many of its Silicon Valley peers, Twitter workers are mostly male and white according to a diversity report released by the company Wednesday. More

As 65,000 IDF reservists are tapped to serve in Gaza, Israeli's tech community tries to maintain business as usual, amidst bombs, sirens and employees called to war. More

Chinese buyers are now the biggest international players in the U.S. housing market and some states are seeing billions of dollars in real estate deals as a result. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.