Renewed concerns over the stability of European banks sent gold prices up Thursday.
News that one of Portugal's biggest financial firms missed a debt payment hit stock markets in Europe, raising worries about the region's banks. Traders shifted money into U.S. Treasurys and gold in search of safe hiding spots.
Gold for August delivery rose $14.90, or 1.1 percent, to settle at $1,339.20 an ounce Thursday. Silver for September jumped 44 cents, or 2.1 percent, to $21.51.
Phil Streible, senior commodity broker at RJ O'Brien & Associates in Chicago, said traders often move into gold in anticipation of a crisis.