Gold hits all-time high of over $1,600 on debt worries

Gold prices broke out to a new all-time high above $1,600 per ounce on Monday, as debt worries in the US and Europe continued to trouble investors.

Gold prices rose for the 11th consecutive trading session touching as high as $1,603.40 per ounce.

The metal gained on the back of a surge in borrowing costs for Italy, as heavy selling pressure was noticed in its bond market.  US's lack of a deal to raise the $14.3 trillion debt ceiling, also aided the spiral rally of gold prices.

The eleventh consecutive trading session rise in the gold price is the longest straight rise since January of 1980. Gold has risen by nearly 8 per cent since the start of July, at $1600.40 an ounce and rose spectacularly 3.2 per cent last week.

Gold price extended its monthly and year-to-date gains to 6.6 per cent and 12.5 per cent respectively with Monday's high of $1,603.40 per ounce

Gold is considered a safe investment and usually gains at times of global economic uncertainty.