GOLD
Gold rose to record highs on Tuesday for a fourth straight day
as investors seeking a safe haven bought both the precious
metal and resurgent dollar on renewed worries over debt
burdens in the euro zone. Gold rose in tandem with the dollar
for a second straight day, as investors poured into both the
metal and the U.S. currency as safe havens. Gold's unusual
positive link with the greenback was similar to what happened
when sovereign debt fears were heightened earlier this year.
The euro struggled for a third straight session, swinging from
gains to losses as investors worried about Irish and
Portuguese debt and hedged sizable bets against the U.S.
dollar. Gold has risen almost 8 percent since just before the
Federal Reserve detailed its plans last Wednesday to buy
$600 billion worth of Treasuries to revive the economy, but the
Fed's actions also stoked inflation fears. Also on the radar is
this week's G20 summit. Officials from Germany, Brazil, China
and South Africa are among those expressing concern that the
Fed's policy could weaken the dollar and drive up commodity
prices. If the G20 fails to defuse global tensions, it may
heighten investor concerns that policymakers are drifting
further apart, leaving the world economy vulnerable.
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