U.S. Treasuries jumped and gold prices hit a record high, while global stocks turned negative for the year on Tuesday as investors focused on slowing global economic growth and the euro zone's spreading credit problems, Reuters reported. Markets moved on as U.S. President Barack Obama prepared to sign into law a measure approving a rise in the U.S. statutory borrowing limit. Despite soothing comments from rating agency Fitch, fears that the United States could still lose its triple-A credit rating persisted. U.S. consumer spending dropped in June for the first time in nearly two years, adding to worries the world's largest economy would remain stagnant in the third quarter. The preference for safe-haven assets helped lift gold to its ninth record high this year. Spot gold was at $1,642.19 an ounce, having touched an all-time high of $1,643.79 earlier in the day. U.S. Treasuries rallied after rating agency Fitch said the agreement in Congress was "commensurate with 'AAA' rating." Treasuries were up for a fourth straight day, with the benchmark 10-year note up 29/32 to yield 2.647 percent. On Wall Street, the broad S&P 500 index fell more than 1 percent and was down for a seventh straight day on economic fears and worry that the debt ceiling agreement does not do enough to satisfy the top credit rating agencies. A credit downgrade could increase Treasury yields and raise borrowing costs. The Dow Jones industrial average was down 120.79 points, or 1.00 percent, at 12,011.70. The Standard & Poor's 500 Index fell 16.33 points, or 1.27 percent, at 1,270.61. The Nasdaq Composite Index was down 32.89 points, or 1.20 percent, at 2,711.72. -- SPA
