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The precious metal enjoyed 11 days of gains leading up to its historic price on Monday (July 18th), with analysts attributing the rally to traders putting their money into safe-haven commodities in the face of mounting debt worries in Europe and the US.
According to Dow Jones, both July and August delivery gold climbed 0.8 per cent to reach $1,602.10 and $1,602.40 respectively. The latter is the more heavily traded option.
Speaking to BBC News, CMC Markets' Michael Hewson suggested further advances in the price of the commodity could be forthcoming.
He added: "Gold hit another milestone ... at $1,600 as investors lose confidence in the ability of politicians to get a grip with the debt problems weighing down on sentiment."
An emergency summit of European leaders on Thursday could soothe investors' fears if progress is made.
Posted by Clive Arneil
