SINGAPORE – Gold surged to a record high and oil and other commodities fell on Monday as investors flocked to safer assets with time quickly running out for US lawmakers to reach a debt deal, raising the prospects for a disastrous default. US lawmakers appeared further apart than ever on a broad deficit reduction deal that would clear the way for Congress to raise the $14.3-trillion debt ceiling as the clock ticked toward an Aug. 2 deadline. Failure to resolve their differences in eight days could trigger global economic calamity and downgrade America's Triple-A credit rating. The uncertainty lifted gold to above $1 620 an ounce, the fifth record high for bullion in less than two weeks. Spot gold , which has risen nearly 14 percent so far this year, climbed more than 1 percent to a record $1 622.49 an ounce, before easing to $1 614.11 by 0540 GMT. "A lot of it is undoubtedly fear from traders on concerns about the US Treasuries and the dollar outlook," said Ben Westmore, commodities economist at National Australia Bank. "At the moment, the US is looking a bit unstable and gold is a pretty good substitute." Gold has rallied in 14 of the 17 trading sessions so far this month, and is up around 7.6 percent from the end of last month. The US dollar dropped to a four-month low against the yen and eased against the Swiss franc amid the US debt uncertainty. "The jubilant buying of risk assets which was on display last week will be placed firmly on hold until an agreement on the US debt ceiling is reached," said Tim Waterer, senior forex dealer for CMC Markets. US Secretary of State Hillary Clinton said she was confident President Barack Obama would ultimately reach a deal with congressional leaders to prevent a default. Analysts believe US lawmakers need to reach a deal before the end of Monday to give Congress enough time to approve the increase in the debt ceiling by Aug. 2. OIL DOWN BUT BULLISH VIEW INTACT The faltering debt talks also pressured oil prices, with US crude down more than a dollar to as low as $98.74, after hitting a six-week high on Friday. Brent crude eased 88 cents to $117.79 a barrel. Despite oil's fall, traders maintained a bullish outlook with hedge funds and other large investors increasing their bets on high crude prices for a third straight week up to July 19, the Commodity Futures Trading Commission said on Friday. In grains, U.S. corn and wheat futures fell sharply, hurt by forecasts for rain this week in the heat-stricken U.S. Midwest and by concerns over the US debt talks. Chicago Board of Trade corn for December delivery, the harvest month contract, fell more than 2 percent to $6.71-1/4 per bushel, well short of a record high near $8 per bushel in early April when old crop U.S. supplies were tight. Spot month September contract shed 2 percent to $6.76-1/2. Wheat for September delivery fell 1.3 percent to $6.83 a bushel, after Friday's 2.2 percent gain, on forecasts for rain which could help crops recover from a recent heatwave. Three-month copper on the London Metal Exchange eased $47 to $9,628 a ton, with supply risks helping limit losses. A strike at Chile's Escondida mine, the world's top copper mine, entered its fourth day with no signs of a deal to end a protest that unions are threatening to extend across the country.

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