Gold price eases to $1,229/ounce

NEW YORK (AP) — Gold dipped Thursday, a day after reaching a new record.

Investors paused and took some profits following a nearly unbroken climb this month. Traders have been piling into the gold market in recent weeks because of long-term worries about the health of the euro and other currencies.      

Gold has risen nearly 5 percent in May.      

“It just makes sense for there to be some profit-taking,” said Scott Carter, an executive vice president at Goldline International.      

June gold fell $13.90 to settle at $1,229.20 an ounce.      

It traded as low as $1,227.50 an ounce earlier in the day after reaching a record of $1,249.20 an ounce on Wednesday.      

Despite the pullback, Carter said gold should continue to rise over the long term. Over the past couple of weeks, traders have worried that Greece and other European countries with spiraling debt won’t be able to cut costs. That led investors to park their money in gold as an alternative to holding currencies.

Carter said demand for gold from European investors has surged recently as they diversify their portfolios and reduce exposure to the euro. The euro is trading around a 14-month low against the dollar.      

Historically, investors have bought gold because its value is seen as being very stable over time. Currencies can lose their purchasing power because of inflation or rampant government spending.      

Silver, which has been closely tracking gold recently, also fell slightly. But not before it touched a fresh high.      

July silver hit a new record of $19.845 an ounce early in the day before retreating. It settled at $19.499, down 16.4 cents.      

Other metals were narrowly mixed. Platinum for July delivery fell $7.90 to $1,739.40 an ounce, while June palladium fell $4.15 to $543.30 an ounce. Copper for July delivery rose 4.35 cents to $3.2315 a pound.