From today's WSJ:

Gold Settles at Record $1,306.60

NEW YORK—Gold futures settled above $1,300 for the first time Tuesday, as investors bet the metal will hold its value more strongly than currencies and stocks amid continuing concerns about the economic recovery.

Gold for September delivery, the nearby but thinly traded contract, rose $9.90, or 0.8%, to settle at a record $1,306.60 per troy ounce on the Comex division of the New York Mercantile Exchange. The most actively traded December contract finished 0.7% higher at $1,308.30, the metal's ninth record settlement in the last 11 sessions.

A fresh round of disappointing data from the U.S. also reinforced expectations that the Federal Reserve will soon launch a new program to help kickstart the economy. Such measures, expected to include the purchase of Treasurys, would pressure the dollar and boost gold as a hedge against the potential devaluation of the greenback.

"The value of the dollar is probably one of the more important drivers behind gold prices," said Frank Lesh, analyst and broker at FuturePath Trading in Chicago. "We hit a new low on the dollar, so we've got a new high in gold."

The dollar isn't the only currency that has been under pressure recently, as governments across the globe have sought in succession to press down on exchange rates to prop up their own economies. As a perceived alternative currency, gold can benefit when investors grow wary of paper currencies in general, not just the dollar.

On Tuesday, the dollar fell broadly on the same disappointing data that sent participants into gold as a refuge.

U.S. consumer confidence fell more than expected, and separate home-price data showed continued slow growth in a crucial sector of the economy.

"You're seeing a flight-to-quality trade," said Charles Nedoss, senior market strategist with Olympus Futures. "You're seeing some money come out of equities and go into the safer-haven instruments."

[gold0928] Associated Press

Gold is considered a safer bet than some other commodities and equities in times of financial uncertainty because the precious metal isn't as linked to industrial cycles as those other investments.

The weaker data bolstered the Fed's case for quantitative easing, which involves increasing the money supply, said Tom Pawlicki, an analyst with MF Global.

Gold's string of records has also come as investors have wanted the perceived safety of the metal amid fears about European sovereign-debt issues.

"Anytime we see any news of European debt problems, it's supportive for gold—and at this point it could be Greece, it could be Ireland, it could be Spain—that theme remains with us," Mr. Lesh said.

Most recently, Moody's Investors Service downgraded the debt of Anglo Irish Bank, and a weekly German newspaper reported European Commission officials were worried about the health of several regional banks there.

Other precious metals traded in New York also rose Tuesday.

Comex December silver extended its highest point since March 2008 to an intraday high of $21.775 an ounce, while nearby September metal hit a new 30-year high of $21.655 intraday.

Nymex January platinum rose 0.3%, while December palladium on the exchange gained 1.5%.