Spot gold touched a record high on Monday, on track for its longest winning run in at least four decades, reflecting persistent worries about the eurozone debt crisis and a growing threat of a US government default. Spot gold rose to an all-time peak of $1,598.41 and US gold hit a record high of $1,599.20.
The appetite for bullion as a safe storage of value increased, as Republicans and Democrats sought to craft a plan that could avert an unprecedented government default, which might wreak havoc in global markets and send the world's top economy back to recession.
"The political uncertainties in the United States and Europe will be an ongoing theme and safe-haven demand will continue," said Natalie Robertson, a commodities analyst at ANZ.
Spot gold edged up 0.2 percent to $1,596.20 an ounce by 0612 GMT, on course for an 11th straight session of gains, its longest winning stretch in at least four decades. US gold gained 0.4 percent to $1,596.70.
Holdings at the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose nearly 1 percent to 1,236.013 tonnes, highest since late January.
Spot silver hit $39.95, its highest since May 4. It was trading at $39.84, up 1.5 percent, leading the year-to-date performance in the precious metals complex with a 29-percent gain. US silver gained 2 percent to $39.87.
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