Gold again touches new high

Gold has once again started its upward journeyto record levels. As the uncertainty over the world economy continues, investors are once again flogging to the yellow metal in search of safety.

Gold for August delivery rose $10.30 to settle at $1,256.20 an ounce after reaching $1,259.50 earlier in the day. Gold settled at a record high of $1,258.30 a week ago, and reached an intra-day high of $1,266.50 on Monday.

The World leaders are meeting in Toronto, Canada to discuss ways to keep the stimulus going along with keeping the budget deficit on account of stimulus spending in check. This is proving to be a lot tougher than expected.

Already many nations have started cutting back on the stimulus spending, which aggravates the fears of world falling into a recession again. The US has been urging the world that the stimulus package need to continue and budget deficits can be checked and controlled later.

The Uncertainty in this regard has prompted many investors to move funds to Gold which has prompted this fresh rally.