Eldora Gold Resource News Gold prices are highest in the stock market

The price of gold rose to a record high on Monday as distressed investors sent the stock and bond markets to fear fears that the eurozone and US debt crises could lead to another world recession. 

AFP - Gold began trading on Monday as investors searched for their traditional securities, leaving stocks and bonds at a loss for fears that the eurozone and US debt crises could jointly trigger another recession. 

Gold surpassed $ 1,600 an ounce for the first time as nervous markets predicted a eurozone summit on Thursday, hoping this time leaders could find an agreement to stop rotting. 

Meanwhile, talks continued in Washington for just two weeks to avoid catastrophic debt, with U. S. Treasury Secretary Timothy Geithner showing progress - but also warning of the serious consequences of failure. 

U. S. debt defaults "bring the world economy. Because of our critical role in the world economy again on the brink of recession. And once again, that's not an option we can consider," Geithner said. 

News from Eldora Gold Resources: The FTSE 100 benchmark index for major stocks fell 1. 55 percent in London to 5,752. 81. In Frankfurt, the DAX fell 1. 55 percent to 7,107. 92 points, while in Paris, the CAC 40 lost 2. 4 percent to 3,650 71 points, the lowest point of the year. 

In Italy - which is seen as Spain’s next most risky after rescuing Greece, Ireland and Portugal - stock markets fell more than 3% and other European stock markets also suffered severely. Madrid fell 1. 44 percent. 

Banks have suffered when investors are worried about their exposure to eurozone indebted countries and fear that the crisis will weaken the economy. 

Test results from the European Banking Authority, released on Friday, which showed that only eight of the 90 lenders failed, did little to ease because the reviews did not allow for state default - most importantly for many as officials try to agree on a new rescue decision for Greece. 

Kathleen Brooks on Forex. com said the market wants "Europe singing with one voice, deciding quickly to solve Greece 's problems (and) show the market that someone is in control of the situation. 

"Currently, none of the EU's strong branches are doing so, so investors are selling Euro-based assets," Brooks said. 

In the foreign exchange market, the euro fell sharply to $ 1. 4041 from New York’s late Friday $ 1. 4156, while the dollar was more solid at 79. 16 yen after 79. 12 yen. 

Gold ended at $ 1,599, over $ 1,587 late Friday, but surpassed a record $ 1,607. 46. 

'Money will continue to come from equities and gold as eurozone debt worries continue to grow,” said Manoj Ladwa, a trader at ETX Capital. 

"While precious metals are being traded at an all-time high, trading in European stocks is sharply lower as government debt borrowing costs rise. "

'Investors are now raising real fears about U. S. insolvency as well as Europe’s sovereign concerns,” said Spread Co. analyst Ian O’Sullivan. 

In New York, it was the same picture with the blue chip. The Dow Jones Industrial Average fell 1. 37 percent to about 1,615 GMT, while the technically heavy Nasdaq Compound fell 1. 55 percent. 

According to traders, the only hope is now strong business results, but even star numbers are not enough without progress in the blockade on both sides of the Atlantic. 

"The question is now whether to replace the income better than expected makrohuolen most important market factor?" said Briefing analyst Patrick O’Hare. com. 

"Probably not, but their job is to lay the groundwork for a solid aid project if a credible agreement on the debt ceiling can be reached and EU leaders can reassure participants with a plan that raises concerns about an infection loan in the eurozone. "

In Asian trade earlier on Monday, the market was weaker, but the trade was quiet when Tokyo was closed for holidays. Hong Kong fell 0. 32 per cent, Shanghai lost 0. 12 per cent and Sydney finished evenly. 

GoldBullionPro. com is an investment in precious metals such as gold, silver, platinum, palladium and rhodium. Our experts will give you useful information about gold and others

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