(Reuters) - Gold surged to an all-time high above $1,600 (999 pounds) an ounce on Monday, extending a record rally as investors sought a safe haven on fears that U.S. lawmakers could fail to raise the debt limit, resulting in a default.
Gold rallied even as the U.S. dollar strengthened, helping the precious metal hit record highs across a number of major currencies, namely euro, sterling, South African rand and the Canadian dollar.
The latest rally, which began three weeks ago on euro zone debt worries, has powered gold into uncharted territory. Europe has been struggling to put together a second bailout for Greece and contain its debt crisis.
Bullion has gained 8 percent in 11 days as President Barack Obama and Congress have failed to reach an agreement to raise the $14.3 trillion U.S. borrowing limit. With the clock ticking towards an August 2 deadline, investors have turned to gold at the expense of riskier assets such as equities and commodities.
U.S. gold futures for August delivery were up $16.40 an ounce at $1,606.40.
Adjusted for inflation, gold's all-time high was above $2,300 an ounce set in 1980.....read in full