Gold in euros sets new highs on euro zone jitters

Gold climbed on Tuesday and set fresh record highs in euro terms, benefiting from safe-haven buying as a weekend rescue package for Ireland failed to assuage investors' jitters over further debt contagion in the euro zone. The euro hit its lowest in 10 weeks against the dollar and Spanish and Italian government bond yields hit euro lifetime highs, as the market focused on which peripheral country may be the next to need a bailout. Spot gold was up 0.37 per cent at $1,373.10 an ounce at 1114 GMT. Gold futures were 0.5 per cent higher at $1,373.

In euro terms, gold was trading at €1,054.17 an ounce, off a record high set earlier in the session of €1,058.70. Like gold, the rest of the precious metals complex also firmed. Spot silver gained 0.15 per cent to $27.17 an ounce, heading for a 10 per cent monthly gain, also a fourth straight month of gains. Platinum added 0.18 per cent to $1,646.24 an ounce and palladium was up 0.7 per cent at $693.97.