LONDON (SHARECAST) - Gold hit a new high on Monday as concern deepens about the drawn out stalemate on US debt negotiations. Gold for August delivery rose $10.70 to settle at a record $1,612.20 an ounce on the Comex division of the New York Mercantile Exchange. Earlier the contract touched a record high of $1,624.30 an ounce. The yellow metal's safe haven status was in demand on concern that talks on how to raise the US debt ceiling between White House and Republican Party officials had broken down over the weekend. If an agreement is not reached on the nation's $14.3trn debt ceiling by the 2 August deadline, the US could face a potential default and a likely round of credit downgrades. Meanwhile worries about stalled US debt ceiling talks took crude oil futures lower on Monday. Crude for September delivery settled down 67 cents at $99.20 a barrel on the New York Mercantile Exchange.

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