NEW YORK - July 18, 2011 - The price of gold surged on Monday above $1,600 per ounce for the first time in history, as investors bought the safe-haven metal amid deepening debt worries in the eurozone and the United States.

Gold jumped as high as $1,600.10 an ounce in early morning trading on the London Bullion Market, as the precious metal extended its recent record-breaking surge which began on Friday.

"Gold hit another milestone... at $1,600 as investors lose confidence in the ability of politicians to get to grip with the debt problems weighing down on sentiment," said CMC Markets analyst Michael Hewson.

"More advances look likely while this lack of confidence prevails as investors plough capital into the asset."

The precious metal is regarded by most investors as a safe haven in times of global economic turmoil.