Gold may rise for a 12th day after touching a record in the longest winning streak in at least nine decades as debt concerns in Europe and the U.S. spur demand for a protection of wealth. Bullion climbed to an all-time high in pounds and silver advanced to a two-month high. Bullion held in exchange-traded products yesterday climbed 0.9 percent to 2,120.5 metric tons, the most ever, data compiled by Bloomberg show. European government leaders plan to gather in Brussels this week to break a deadlock over a new Greek rescue that has spooked investors. President Barack Obama vowed to veto a Republican proposal to impose mandatory budget cuts as U.S. officials struggle to reach agreement on how to avoid a default. “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,” Hou Xinqiang, an analyst at Jinrui Futures Co., said by phone from Shenzhen, China. “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.” Immediate-delivery gold gained as much as $5.25, or 0.3 percent, to $1,610.10 an ounce and traded at $1,606.05 by 9:42 a.m. in London. A 12th day of gains would be the longest streak since at least 1920. Gold for August delivery was 0.2 percent higher at $1,606.10 an ounce on the Comex in New York after reaching a record $1,610.70. European Sovereign Debt Gold is up 13 percent this year, heading for an 11th straight annual gain, the longest winning streak since at least 1920 in London. The MSCI All-Country World Index of equities gained 1.3 percent in 2011, the Standard & Poor’s GSCI Index of 24 commodities is up 9.7 percent and Treasuries returned 3.5 percent, according to a Bank of America Merrill Lynch index. Yesterday, stocks declined around the world, the euro fell and the cost of insuring European sovereign debt rose to records amid concern the euro region isn’t any closer to solving the crisis. Greece received a 110 billion-euro ($156 billion) rescue in May of last year from the European Union and the International Monetary Fund. U.S. lawmakers are no closer to meeting an Aug. 2 deadline for increasing the $14.3 trillion debt limit. Moody’s Investors Service, Standard & Poor’s and Fitch Ratings have said they will cut the U.S.’s top-level credit ranking should failure to raise the debt limit lead to a default. “The world is shunning fiat currencies and is rushing to embrace gold as the only long-standing currency,” economist Dennis Gartman, who owns gold priced in yen, euros and pounds, said in his Suffolk, Virginia-based Gartman Letter. “Eventually there will be a massive crack in gold and silver,” at which point he will buy more bullion, he said. ETP Holdings The metal touched a record 1,003.32 pounds today and reached an all-time high of 1,144.83 euros yesterday. Investors’ holdings in ETPs are more than all but four central banks, data compiled by Bloomberg and the World Gold Council show. Silver for immediate delivery climbed as much as 0.8 percent to $40.865 an ounce, the highest level since May 4, and was last at $40.6375 for a 31 percent rise this year. The best- performing precious metal in 2011 slumped as much as 35 percent from a record $49.79 an ounce set April 25 as Comex’s owner, CME Group Inc. (CME), raised the cost of taking new speculative positions. “Silver is clearly benefiting from its greater affordability, attracting investors who are keen on hard assets during these uncertain times,” Edel Tully, a London-based analyst at UBS AG, said today in a report. Palladium for immediate delivery in London gained as much as 0.9 percent to a five-week high of $802.75 an ounce and was last at $798.25. Platinum was up 0.6 percent at $1,783 an ounce after earlier today reaching $1,791.05, the highest price since June 15. To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Glenys Sim in Singapore at gsim4@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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