Gold News & Info

Source: Marketwatch

San Francisco— Gold futures ended at a record Tuesday as the gathering clouds over the U.S. economy sent investors flocking to the perceived safety of the metal. Gold picked up the pace of its gains after U.S. government data showed consumers held on to their wallets in June, which follows weak macroeconomic data in the previous session. Gold for December delivery added $22.80, or 1.4%, to $1,644.50 an ounce on the Comex division of the New York Mercantile Exchange. Silver tracked gold higher, but other metals more closely linked with economic activity settled lower on fears an economic slowdown would lead to diminished demand.

Gold traded as high as $1,647.80 an ounce, according to FactSet Research, an intraday record. �You have a new element on the table: [the prospect of a return to] recession in the U.S.,� said Adam Klopfenstein, a senior market strategist with MF Global in Chicago. �We have problems with the deficit, problems with growth, and problems overseas.� A weak jobs report Friday would likely send gold to an �assault� on the $1,700-an-ounce level, he added. The Commerce Department said consumer spending fell 0.2% in June, the first decline in nearly two years. See full story.