Gold futures rose for the second straight day in New York as renewed concern that the Greek debt crisis will worsen and signs of a slowing global economy spurred demand for the metal as a store of value.

The MSCI All-Country World Index fell as much as 3.1 percent, and the Standard & Poor’s 500 Index slipped 3.1 percent after German Chancellor Angela Merkel’s government said it is preparing plans to shore up banks in the event that Greece fails to meet the terms of its aid package and defaults. President Barack Obama yesterday proposed a $447 billion plan to create jobs and boost the U.S. economy.

“The Greece problem is huge, and people also are skeptical about how much of Obama’s plan will be translated into action,” Frank Lesh, a trader at FuturePath Trading, said in a telephone interview from Chicago. “Equities are tumbling, and the flight to safety has begun.”

Gold futures for December delivery gained $2, or 0.1 percent, to settle at $1,859.50 an ounce at 1:49 p.m. on the Comex in New York. This week, the price fell 0.9 percent after the metal surged to a record $1,923.70 on Sept. 6. After today’s close, the metal slid to $1,847.30 in electronic trading. – Bloomberg