Gold hits two-month high, silver rallies

LONDON, Sept 1 (Reuters) - Gold prices rose to their highest in just over two months in Europe on Wednesday as investors bought the metal as a haven from risk amid growing fears over the outlook for the global economy.

Holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust <GLD>, rose nearly 4 tonnes on Tuesday as buyers were attracted to the perceived safety of physical bullion. [GOL/SPDR]

Spot gold <XAU=> hit a peak of $1,251.45 an ounce was at $1,251.05 an ounce at 0822 GMT versus $1,248.99 late in New York on Tuesday. Silver <XAG=> also hit its highest since mid-May at $19.53 an ounce and was later at $19.42 an ounce against $19.34.

(Reporting by Jan Harvey; Editing by William Hardy)