Gold tops $1,700 as euro gains against US dollar
The price of gold surged this afternoon as the US dollar, an alternative asset to the yellow metal, decline amid a rally in the euro.
The 17-nation currency was boosted by reports that the euro zone's two largest economies, Germany and France, are set to propose a limit on government borrowing within the monetary union.
In addition, a report in Italian newspaper La Stampa said Italy is in talks with the International Monetary Fund (IMF) over a loan of up to €600 billion. The IMF quickly denied the rumour, but that failed to halt the rally in stock and commodity markets.
Gold enjoyed more support from strong physical demand as investors bought into the cheap price after gold shed over US$40 last week, falling below the US$1,700 per ounce level.
Gold traded at US$1,710/oz, up US$30 from Friday's close. Silver surged US$1.10 to US$32.08/oz and platinum added US$26 to reach US$1,550/oz.
Today's top risers in the sector were:
Alecto Minerals (LON:ALO), up 15 percent at 2.01 pence at midday
ECR Minerals (LON:ECR), up 9.5percent at 1.12 pence
Bezant Resources (LON:BZT), up 8 percent at 25 pence
Triple Plate Junction (LON:TPJ), up 8 percent at 4.45 pence
GoldStone Resources (LON:GRL), up 7 percent at 4.95 pence
The top fallers were:
Serabi (LON:SRB), down 12 percent at 9.7 pence at midday
Solomon Gold (LON:SOLG), down 10 percent at 7.31 pence
Angel Mining (LON:ANGM), down 9.5 percent at 1.13 pence
Randgold Resources (LON:RRS), down 8 percent at 6,228 pence
Orsu Metals (LON:OSU), down 8 percent at 7.25 pence
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