Gold rose to a record high Monday, topping $1,600 per ounce, while concerns over mounting debt in both the United States and Europe heighten.

Amid worries of a debt problem in Europe and uncertainty over resolving deficit negotiations in the United States, gold futures for August delivery settled at $1,602.40 per ounce, down from $1,607.90 per ounce at the Comex division of the New York Mercantile Exchange.

Gold is the uncertainty hedge, said Chuck Butler, president of EverBank World Markets. We've had no shortage of people saying there is going to be Armageddon if the debt ceiling isn't raised. Investors remain worried about a possible debt downgrade if Washington raises the debt ceiling but does not implement significant cuts in spending, added Butler.

Since July 12, the rising gold price climbed up by $9.90, according to Kitco's gold index. New highs for gold this week follow a record $1,594.90 per ounce high from last week's trading, according to the minutes of the Federal Reserve's June policy meeting.

Meanwhile, silver was last gaining $1.18 to $40.25 an ounce, CNN Money reports.

Further stimulus could undermine the U.S. dollar, triggering a flight to gold, the age-old stalwart in troubled times, when investors are afraid to put their money elsewhere. I think people are coming to realize that the economy is weakening again and the government might see a need to try to stimulate the economy further, said Joe Foster, portfolio manager for the Van Eck Global International Investors Gold Fund.

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