Gold prices have surged by 7 percent since last week, rising steadily to over $1,719 a troy ounce. This is the highest level in a month as demand for the safe haven asset has risen amid mounting concerns over a near-term resolution to the euro zone debt crisis.
Gold for December delivery climbed as much as 1.2 percent to $1,721.40 on the Comex in New York, the highest price since September 23. Gold hit record highs of $1,921.15 on September 6.
The precious metal’s safe-haven status is re-merging in the past two weeks as risk appetite is fragile especially in the build up to the European Union Summit later today.
The Summit of European Union leaders will get underway today with hopes of coming to an agreement on some kind of plan to contain the euro zone debt crisis. So far there has been disagreements over how to bolster the euro-zone rescue fund, recapitalize banks and define the size of bondholder writedowns on Greek debt.
Asian stocks snapped a three-day gain this morning and the yen was 0.4 percent from a record high versus the dollar as investors nerves are jittery before European leaders meet today.
The euro has steadied against the dollar, trading in a range as investors wait on the sidelines and prefer not to enter into new positions.