Gold climbed to a new all-time record high of $1,633 per ounce Friday morning

Gold climbed to a new all-time record high of $1,633 per ounce Friday morning (Weston time), fueled by rising risk aversion in financial markets stemming from the disappointing second quarter U.S. GDP report and the debt ceiling impasse.

Today’s gold rally marks the latest in a series of new all-time highs for the yellow metal. Earlier this week, gold rose to $1,626 per ounce, and surpassed the $1,600 level two weeks ago.

Gold is on pace for its eleventh consecutive year of gains.

While many have agonized over the looming August 2 deadline to raise the U.S. debt ceiling, one interesting label for the turmoil may be a “cacophonous hubbub.”

That term was used by Gillian Tett, who in today’s Financial Times noted that “Almost every pundit and politician worth their salt has been expressing views on what could – or should – happen next…There is, however, one notable exception: the mighty Federal Reserve and Treasury. In recent weeks, senior officials at both institutions have warned in general terms about the risks of failing to raise the debt ceiling. They have also tried to reassure investors that this risk is small.”

Tett argued that Treasury Secretary Tim Geithner and Fed Chairman Ben Bernanke need to present their contingency plans to the financial community in the event that the debt ceiling is not raised.

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