Gold prices touch another record high

NEW YORK (AP) — Gold prices touched a record high today after disappointing reports on Europe's economy, a weaker dollar and a seasonal increase in demand for gold jewelry.

Two new reports called into question the strength of Europe's economy. German investor confidence fell sharply in September, and industrial production unexpectedly slowed during July in the countries that use the euro. Weak economic growth worldwide often drives investors into park money in gold futures.

"As long as there is still uncertainty in the market, there should be support for gold," said William Rhind, strategic director for ETF Securities.

Gold for December delivery touched a record of $1,276.50 during Tuesday trading, before settling $24.60, or 2 percent, higher at $1,271.70 an ounce.

Silver followed gold, rising 28.1 cents to $20.432 an ounce. It also touched a new high of $20.55 an ounce during the day.