Gold surged over 2 percent to all-time highs on Tuesday, as investors scrambled for a safe haven from sliding stock markets, a sputtering economy and a potential downgrade of the top-notch US credit rating. Bullion notched its biggest daily gain since November 5, just after the US Federal Reserve launched a second round of government debt purchases, or quantitative easing.
Some investors believe the Fed may soon embark on a third round of dollar-printing stimulus to revive the moribund US economy. Spot gold shot 2.4 percent higher to $1,656.69 an ounce by 4:15 PM EDT (2015 GMT), having touched its ninth record since July at above $1,650. US gold futures for December delivery settled up $22.80 at $1,644.50 an ounce.
Silver rose 3.8 percent to $40.750 an ounce. Bullion has rallied around 17 percent so far this year, and has gained more than 10 percent since the end of June when the Federal Reserve's $600 billion bond-buying program ended. Platinum was up 0.1 percent at $1,790.50 an ounce while palladium eased 0.2 percent at $823.44 an ounce.