gold futures

Gold prices jumped in early Tuesday trading in advance of a Federal Reserve meeting and U.S. elections before leveling off and finishing the day slightly higher than Monday's levels.

Gold prices reached a record $1,308.90 an ounce Tuesday after earlier price declines and continued low interest rates spurred investors to buy bullion. Gold, which earlier had its biggest intraday decrease in more than two months, reached a record high for the eighth time in two weeks.

The price of gold has been on a tear for the past decade, rising 400% since 2001. Now, with the direction of the U.S. economy unsure, investors are still adding gold to their portfolios. Jennifer Ropiak of the NYSE Liffe U.S. talks about how you can diversify your investments with the yellow bullion.

Gold prices suffered their biggest one-day drop since early February after the European Central Bank's emergency funding programs suggested the Continent's financial system may not be as wobbly as initially thought.

The Federal Reserve is far and away the biggest holder of gold reserves in the world, but other large central banks are sitting on considerable amounts of the precious metal as well. From Germany to India, take a look at the top owners of gold reserves.

Gold futures continue to climb, trading as high as $1,254.50 an ounce early Tuesday morning. By mid-morning, gold futures were trading at $1,244, up $3.50.