Gold Jumps above 1,600-Dollar Mark on U.S., European Debt Concerns

CHICAGO, Jul. 19 -- Gold futures on the COMEX Division of the New York Mercantile Exchange extended its winning streak into a 10th session on Monday, settling above 1,600 dollars per ounce, as concerns about the eurozone debt crisis and the lack of agreement on raising the U.S. debt ceiling prompted investors to flock to the precious metal as a safe haven.

The most active gold contract for August delivery rallied 12.3 dollars, or 0.8 percent, to 1,602.4 dollars per ounce.

Analysts mentioned that there are growing concerns among investors that Europe's debt crisis will spread to Italy and Spain, ahead of an emergency meeting of EU leaders later this week, amid continuing uncertainty over the ability of European officials to agree on a second aid program for Greece and stop Greece's trouble from spreading to other debt-plagued eurozone nations.

A trader mentioned that investors are also worried by the inability of U.S. politicians to work out a deal before Aug. 2, the deadline for Congress to pass legislation to raise the debt ceiling and effectively prevent a default.

Silver for September delivery surged 1.271 dollars, or 3.3 percent, to 40.342 dollars per ounce.