Gold hit another all-time high on Friday as investors sought a safe haven, after anaemic US growth data raised the prospect of recession if a deadlock over Washington's debt fails to be resolved quickly Gold volatility climbed as Republicans pressed ahead with a deficit plan that cannot pass Congress and President Barack Obama told lawmakers to stop wasting time. The metal could tumble if a debt-ceiling deal eases fears in other financial markets, analysts said.
Bullion hit its third record in five days, notching a near 9 percent gain for July, after Friday's GDP data showed the US economy stumbled badly in the first half of 2011 and came dangerously close to contracting in the January-March period. Spot gold touched an all-time peak of $1,632.30 an ounce, and was up 0.5 percent at $1,623.99 by 2:51 pm EDT (1851 GMT). On weekly charts, CitiFX strategists said bullion's monthly close above $1,557.75 indicates that July is a bullish outside month, confirming a 2011 target between $1,700 and 1,750.
The US December contract settled up $15 at $1,631.20 an ounce. Futures volumes were lower than the last several sessions, as most investors had completed contract rollover ahead of the August contract's first-notice day on Friday. Silver rose 0.8 percent to $39.97 an ounce, but was off a more than two-month high of $41.42 hit this week. It posted a gain of around 15 percent for July, its best month since April. Spot platinum was down 0.3 percent at $1,777.24 an ounce. Palladium eased 2 cents at $823.73 an ounce, but the metal notched a monthly rise of nearly 10 percent, its biggest this year.
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