NEW YORK ( TheStreet ) -- Gold prices popped Tuesday as investors turned to the metal as a safe-haven asset and momentum buying pushed prices to new all-time peaks. Gold for December delivery settled $24.60 higher at $1,271.70 an ounce -- a record closing high -- at the Comex division of the New York Mercantile Exchange. The gold price hit a record intra-day high of $1,276.50 an ounce, $10 higher than its previous high set in June. The U.S. dollar index was losing 0.91% to $81.11 while the euro was gaining 1.01% to $1.30 vs. the dollar. The spot gold price was rising more than $26, according to Kitco's gold index. >>Preventing Your Government From Stealing Your Gold Gold prices soared Tuesday on inflation worries out of the U.K. and a weaker-than-expected eurozone industrial production report. Inflation fears jump-started the gold market in early trading after the U.K. consumer price index rose 3.1% in August from a year earlier. Economists were expecting a rise of 2.9%, but higher food, clothing and air travel moved the index higher. Gold is the go-to commodity when investors panic over inflation as gold is a form of money that retains some value. Unlike paper currencies, gold's value can never go to zero. Silver prices settled up 28 cents to $20.43 while copper closed down 1 cent at $3.46 on the weak industrial production data. Gold mining stocks, a risky but potentially profitable way to buy gold, were rising Tuesday. AngloGold Ashanti ( AU) was rising 6.21% to $47.36 while Eldorado Gold ( EGO) was adding 5% to $19.96. Barrick Gold ( ABX) was advancing to $45.59 and Freeport McMoRan Copper & Gold ( FCX) was flat at $81.81. -- Written by Alix Steel in New York. >To follow the writer on Twitter, go to http://twitter.com/adsteel.
Readers Also Like: