By Laura Mandaro
SAN FRANCISCO (MarketWatch) -- A rally in gold futures Tuesday put bullion on track for a new settlement high, as investors uneasy over the stability of European banks bought up assets seen as retaining value when the economic outlook darkens. Gold for December delivery, the most active contract, hit an intraday high of $1261.60 and recently traded up $8 to $1259.10 an ounce. A close at these levels would surpass the recent record high of $1258.30 an ounce, set on the Comex division of the New York Mercantile Exchange in June when worries about a possible sovereign debt default in Europe escalated. "Gold could advance to a record on concern among investors that some European banks may struggle to raise additional funds," wrote Pradeep Unni, an analyst at Richcomm Global Services in Dubai, in a morning note.
