Gold may snap its longest winning streak in more than three decades as its advance to a record on U.S. and European sovereign-debt woes spurred sales. Immediate-delivery gold lost 0.2 percent to $1,602.45 an ounce at 10:02 a.m. in Singapore. Spot gold gained for an 11th day yesterday, rising to an all-time high of $1,607.45, the best run since the 11 days to July 8, 1980, according to Bloomberg data. The reading on the 14-day relative-strength index was more than 72, signaling a possible decline. Holdings of the metal in exchange-traded products increased 0.9 percent to 2,120.513 metric tons yesterday, the highest level ever, data compiled by Bloomberg show. Gold assets were up for an eighth day, the longest period of gains since August. “The uncertainties that drove gold to a record remain and while we may see some pullbacks along the way, the bull trend is intact,” said Jinrui Futures Co. analyst Hou Xinqiang who was ranked sixth in a poll of China gold analysts by the Futures Daily and Securities Times. Gold for August delivery in New York traded little changed at $1,602.80 an ounce, after rising to a record $1,607.90 yesterday. Spot silver dropped 0.6 percent to $40.3088 an ounce, after reaching the highest level since May 4 yesterday. U.S. policymakers will remain in session until they hammer out a deal to increase the U.S. debt ceiling, said Senate Majority Leader Harry Reid, as negotiators near the Aug. 2 deadline. The discussions are aimed at reaching an agreement on a deficit-cutting deal that Republicans have made a prerequisite for approving a debt increase, a proposal which President Barack Obama has threatened to veto. In Europe, leaders will meet for a second time in a month on July 21 to break a deadlock over a second Greek rescue. Spanish and Italian bonds yields surged yesterday amid concern officials may not solve the region’s fiscal crisis soon. Cash platinum added 0.2 percent to $1,775.75 an ounce and palladium was little changed at $796.25 an ounce. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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