Gold surged to a record, gaining for a 12th consecutive day, as U.S. and European sovereign-debt woes spurred haven demand. Silver jumped to an 11-week high. Immediate-delivery gold gained as much as 0.3 percent to $1,610.10 an ounce and traded at $1,609.05 by 3:22 p.m. Singapore time. Gold for August delivery in New York also advanced to an all-time high, rising as much as 0.5 percent to $1,610.70 an ounce. “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 Jinrui Futures Co. analyst Hou Xinqiang who was ranked sixth in a poll of China gold analysts by the Futures Daily and Securities Times. 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. “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,” said Hou. 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. Spot silver climbed for a sixth day, gaining as much as 0.8 percent to $40.865, the highest level since May 4. Futures for September delivery on the Comex in New York rose to $40.88 an ounce, also the highest level since May 4. 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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