Gold may extend its longest winning streak in more than three decades as U.S. and European sovereign-debt woes spurred haven demand. Immediate-delivery gold was little changed at $1,603.25 an ounce at 1:03 p.m. in Singapore, after earlier dropping 0.2 percent. 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. 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. The reading on the 14-day relative- strength index was more than 73 today. Gold for August delivery in New York gained 0.2 percent to $1,606.10 an ounce, after rising to a record $1,607.90 yesterday. Spot silver fell 0.3 percent to $40.42 an ounce, after reaching the highest level since May 4 yesterday. U.S., Europe Debt “Gold’s safe haven properties have been in play recently and ever since the global recession in 2008, it has become a vital part of most people’s investment portfolio,” said Hou. “Europe’s debt is a time bomb and while the U.S. will eventually settle the current debt issue, there still exists a lot of uncertainties in that market.” 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 gained 0.3 percent to $1,778 an ounce and palladium added 0.3 percent to $798.25 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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