Gold climbs sharply as investors question how much European bailout will help economy

Gold surges, approaches new record

NEW YORK — Gold is surging again as investors have second thoughts about how much long-term debt relief a European bailout package will provide.

Gold nearly hit another record Tuesday, settling up $19.50 at $1,220.30 an ounce.

Earlier in the day, gold rose as high as $1,225.20. That’s just $2.30 shy the record level it reached in December.

Aside from Monday’s pullback, gold has climbed steadily in recent days as investors sought out safe places to park their money amid Greece’s debt crisis.