Gold climbed to a two-week high, topping $1,550 an ounce, on demand for a store of value amid escalating concerns that Europe’s sovereign-debt woes will widen.

European equities tumbled the most in seven weeks, led by banks and insurers, as contagion from Greece’s debt crisis threatened to spread to Italy and Spain. Gold priced in euros and the U.K. pound climbed to records. The metal gained 4 percent last week on signs that U.S. interest rates will remain low.

“Concerns over unresolved debt issues in the monetary union continue to haunt investors,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said in a report. “A prolonged period of ultra-low currency yields and persistently dovish tone from the Federal Reserve will likely be supportive” for gold, he said.

Gold futures for August delivery rose $7.60, or 0.5 percent, to settle at $1,549.20 at 1:40 p.m. on the Comex in New York. Earlier, the commodity reached $1,557.60, the highest price since June 22. The metal climbed to a record $1,577.40 on May 2, partly on demand for a hedge against accelerating inflation.

The European Central Bank on July 7 increased its benchmark interest rate to the highest since March 2009 to stem inflation. In June, consumer prices in China rose the most in three years.

“Inflation will continue to be a big problem globally and this will keep gold prices supported,” said Chi Duofeng, an analyst at Bohai Futures Co. in Changchun, China. “We remain bullish on gold for at least the rest of the year as the global macro-economic picture isn’t encouraging.”

Silver, palladium and platinum, which have wider industrial uses, dropped as copper and other base metals slid.

On the Comex, silver futures for September delivery dropped 84.5 cents, or 2.3 percent, to $35.698 an ounce.

Palladium futures for September delivery fell $11.50, or 1.5 percent, to $767.45 an ounce on the New York Mercantile Exchange. Platinum futures for October delivery dropped $5.10, or 0.3 percent, to $1,728.30 an ounce.