Gold rose nearly 2 percent to a high of $1,217.60 an ounce on Tuesday after debt rating agency Moody's cut Portugal's debt, boosting the yellow metal's appeal as a haven from risk and a hedge against currency market volatility. Spot gold was bid at $1,211.95 an ounce by 2:42 pm (1842 GMT) against $1,194.85 late in New York on Monday. US gold futures for August delivery settled $14.80 higher at $1,213.50 an ounce, a 1.23 percent rise, on the COMEX.
It reached $1,218.80, its highest since July 1. Investors revived their interest in gold as a tangible asset amid renewed sovereign debt concerns in Europe, along with rallies in the euro and in oil prices, analysts said. Among other precious metals, silver was at $18.22 an ounce versus $17.86, platinum at $1,525.50 an ounce against $1,512, and palladium at $460.60 against $452.