The price of gold is back above $1,600 an ounce as borrowing costs surge for Italy and Spain, the latest reminder that Europe's debt mess continues to fester.
Gold for August delivery rose $17, or just over one percent, to settle at $1,613.80 an ounce Tuesday. Gold has been rising in fits and starts since May 16, when it closed at a 2012 low of $1,536.60 an ounce.
Silver also rose a bit more than 1 percent, gaining 33 cents to settle at $28.949 an ounce.
Investors are still on edge over Europe, as seen in the latest increase in borrowing costs for Italy and Spain. The yield on Spain's 10-year government bond jumped to a euro-era high on Tuesday as questions lingered over Europe's emergency loans to Spanish banks.
