Gold futures gushed above $ 1225 as the single currency was dumped to
fresh 4-year lows against the US dollar today. The heavy losses in the
global equity markets also encouraged investors to rush for gold.
The European single currency tumbled to a fresh four-year low versus the U.S. dollar on Tuesday, pressured by worries over the outlook for the euro-zone banking sector and fears of further sovereign downgrades by major ratings agencies.
The European single currency slipped to its lowest level versus the U.S. dollar in four years Tuesday, taking out the previous low around $1.2142 set on May 19. The euro traded at $1.2126 versus the dollar in recent action.
In the latest indication that European banks are in ill health, the European Central Bank warned late Monday that euro-zone banks face €195 billion ($239.26 billion) in write-downs this year and the next due to an economic outlook that remained clouded by uncertainty.
COMEX August gold futures surged to as high as $ 1225.9. It was now trading up nearly $ 10 at $ 1224.9 per ounce.
On the data front today the Institute for Supply Management's May manufacturing index, is due for release at 10 a.m. Eastern time.
MCX June gold futures jumped to as high as Rs 18762 up nearly Rs 400 from its yesterdays closing. A break of Rs 18790 levels may take it to Rs 18880 levels.
The European single currency tumbled to a fresh four-year low versus the U.S. dollar on Tuesday, pressured by worries over the outlook for the euro-zone banking sector and fears of further sovereign downgrades by major ratings agencies.
The European single currency slipped to its lowest level versus the U.S. dollar in four years Tuesday, taking out the previous low around $1.2142 set on May 19. The euro traded at $1.2126 versus the dollar in recent action.
In the latest indication that European banks are in ill health, the European Central Bank warned late Monday that euro-zone banks face €195 billion ($239.26 billion) in write-downs this year and the next due to an economic outlook that remained clouded by uncertainty.
COMEX August gold futures surged to as high as $ 1225.9. It was now trading up nearly $ 10 at $ 1224.9 per ounce.
On the data front today the Institute for Supply Management's May manufacturing index, is due for release at 10 a.m. Eastern time.
MCX June gold futures jumped to as high as Rs 18762 up nearly Rs 400 from its yesterdays closing. A break of Rs 18790 levels may take it to Rs 18880 levels.
