Gold is trading at $1,535.85/oz, €1,080.37/oz and £950.28/oz. Gold is being supported as default risk has increased after EU finance ministers failed to agree on a new Greek loan package. Gold priced in sterling rose to new record nominal highs this morning at £954.84/oz and the weakness of the euro has seen gold rise to touching distance (9 euros) from new record highs in euro terms at €1,088/oz. Equities have also fallen and Greek bonds are under selling pressure again – as are Portuguese bonds. The Eurozone debt crisis is creating the real risk of global financial contagion. Interbank and commercial paper markets are increasingly nervous about the ghosts of the Lehman Brothers collapse.

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