Lack of US debt progress lifts gold; stocks flat

Gold prices hit a record high of more than $1,625 cost of simple crushers from south africaan ounce on Wednesday and Asian stock markets were largely flat as news out of Washington indicated politicians were making little progress in ending a deadlock over raising the U.S. debt ceiling.

Republicans had to delay bringing a plan to a vote in the U.S. House of Representatives because it was being rewritten, while an analyst at Standard & Poor's told CNBC that prioritising debt payments to avoid a default would be "deeply disruptive" to the economy. Debt and inflation were globally the main focuses of investors. The Australian dollar jumped to a post-float high above $1.1060 after second quarter inflation figures were higher than forecast, squeezing investors who had recently increased bets that the Australian central bank would cut rates this year. The Australian dollar and other Asia-Pacific currencies have been rising as traders anticipate more policymaker action to keep quickening inflation and capital inflows at bay...