Gold hits record high on U.S.,

Gold hits record high on U.S., Europe debt worries

By Rujun Shen

SINGAPORE | Sun Jul 17, 2011 10:41pm EDT

SINGAPORE (Reuters) - Spot gold touched a record high on Monday, reflecting persistent worries about the euro zone debt crisis and a growing threat of a U.S. government default.

Spot gold rose to an all-time peak of $1,598.41 and U.S. gold hit a record high of $1,599.20.

The appetite for bullion as a safe storage of value increased, as investors feared that the stalemate in negotiations over U.S. deficit plan could lead to a default, which might wreak havoc in global markets and send the world's top economy back to recession.

Adding to worries about the economic growth, U.S. consumer confidence hit a near 2-1/2-year low in early July and manufacturing output stalled in June.

"The political uncertainties in the United States and Europe will be an ongoing theme and safe-haven demand will continue," said Natalie Robertson, a commodities analyst at ANZ. more story...