NEW YORK (AP) -- Gold surged Tuesday, nearly setting another record high, as investors had second thoughts about how much long-term debt relief a European bailout package will provide.
Investors returned to safe investments again, a day after stocks and other riskier assets rallied on news that European leaders agreed to a nearly $1 trillion rescue package aimed at helping Greece and other weak European economies manage their debt loads.
Gold for June delivery jumped $19.50 to settle at $1,220.30 an ounce. Earlier in trading, gold rose as high as $1,225.20 an ounce, just shy of the record $1,227.50 it set in December.
Aside from Monday's pullback, gold has climbed steadily in recent days as investors sought safety amid Greece's debt crisis and fears that it would spread, undermining Europe's shared currency.
Gold is "really being looked at as an alternative currency right now," said Nicholas Brooks, head of research and investment strategy at ETF Securities.
Investors are especially favoring gold over the euro, which has fallen sharply against the dollar in recent weeks because of the Greek debt crisis. The euro is hovering near its lowest level against the dollar in 14 months.
Other precious metals, particularly silver, followed gold higher.
Silver for July delivery jumped 74.2 cents, or 3.8 percent, to settle at $19.294 an ounce. July platinum rose $7.30 to $1,700.80 an ounce, while June palladium rose $7.70 to $532.20 an ounce.
July copper fell 2.15 cents to $3.2065 a pound.
The dip in copper comes after a new report showed inflation accelerated in China in April. If inflation continues to be a problem, China could move to raise interest rates in its latest effort to slow down the country's economic growth. China is the largest importer of copper, and any moves to cool its economy could hurt demand for the industrial metal.
Energy prices were narrowly mixed. Benchmark crude for June delivery fell 43 cents to settle at $76.37 a barrel on the New York Mercantile Exchange.
In other June contracts, heating oil rose 1.99 cents to settle at $2.1401 a gallon. Gasoline rose 2.26 cents to $2.1952 a gallon. Natural gas dipped 3.9 cents to $4.131 per 1,000 cubic feet.
Gains and beans rose Wheat for July delivery rose 0.5 cent to $4.9325 a bushel, while corn rose 6.5 cents to $3.77 a bushel. Soybeans rose 5 cents to $9.66 a bushel.
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