Gold at lifetime high… in euro

Spot gold prices surged to a lifetime high in the official currency of the European Union as investors concerned about the Eurozone debt crisis dumped the euro and flocked to the safe haven precious metal.

Gold’s spot market price peaked at €1,083.02 a troy ounce this morning, surpassing the previous euro-denominated record set in December last year. The rise in the spot price of the bullion mirrored a sharp drop in the value of the euro, which slid as much as 1.3 per cent against the dollar to a low of $1.3968.

In dollar terms, gold rose about half a per cent to $1,521.90 per ounce, below the record $1,575.79 it reached in early May.

Renewed worries in the euro-zone over the weekend pulled the euro down to a record low against the Swiss franc, weakened risky assets such as Asian stocks and boosted safe haven investments.

The physical sector saw bargain hunting from jewellers, but the overall market was subdued following a rise in bullion prices.

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