Gold Edges to New High Despite Some Relief in Europe

The sovereign debt issues are not going away. They will only intensify! Morgan Stanley recently predicted that there will be a sovereign that will default on its debt. The only questions are who and when.

HONG KONG (MarketWatch) -- Gold for December delivery touched a high of $1,262.30 an ounce in electronic trading on Globex by late Wednesday afternoon in Asia. That's a more than two-month high for the December 2010 contract, though it tops the record settlement price of $1,259.30 for a widely-traded contract reached at the close of New York trading Tuesday. The contract was last up $2 at $1,261.30. "With European debt concerns set to intensify, we expect further investment diversification to propel the metals [gold and silver] to fresh highs," James Moore, an analyst at TheBullionDesk.com in London, said in a report Wednesday.