The price of gold rose by more than 3 percent on Tuesday, as more investors turned toward the precious metal as a safe haven for their wealth.
According to Reuters data, gold reached an 11-day high of $860.40 an ounce, fuelled by demand from people seeking secure assets.
Standard Chartered analyst Daniel Smith told the news provider that investors are flocking to exchange-traded funds, which issue securities backed by stocks of gold.
"People are slowly building long positions in gold and commodities more generally," he said.
There appears to be a trend of investor mistrust of paper assets in an uncertain economic climate. In addition to exchange-traded funds, other vehicles for gold investment include mutual funds, as well as gold coins or bullion.
"With the exception of the 30-year Treasury bond, gold has held up better than other asset classes and has been in a general upward trend since 2001," Leo Larkin of Standard & Poor’s told Newsday.
Although a stronger dollar often prompts gold to fall, that did not seem to be the case on Tuesday. The dollar rose against the euro as officials released negative predictions about this year’s European economic forecast.