NEW YORK - July 13, 2011 - Gold rallied to all time highs on Tuesday, as investors sought a safe haven on fears that European officials were failing to stop a debt crisis from spreading and uncertainty related to frantic U.S. talks to raise its debt limit.

After trading flat for most of the day, bullion suddenly spiked at the end of the U.S. pit session to extend its rally for a seventh day, as crude oil and other commodities rallied and as the euro pared gains.

Bullion has gained over 6% this month on fears about a deepening euro zone crisis, now trading less than $5 below its all-time high of $1,575.79 set on May 2, 2011. Gold priced in euro and sterling hit record highs for a second consecutive day.

“With the euro zone debt crisis and the U.S. debt ceiling talks, there is a tremendous flight to quality. Gold is the commodity to invest in because currencies aren’t doing well,” said Mihir Dange, COMEX gold options floor trader for Arbitrage LLC.

Spot gold was up 1% at $1,568.89 an ounce by 2:43 p.m. (ET). U.S. COMEX August gold futures settled up $13.10 at $1,562.30 - a record settlement price - after trading between $1,541.10 and $1,574.30.