FTSE extends losses as gold price slips again

The FTSE 100 was trading 1.8% lower at 3pm as US markets slipped at the open following a poor Italian debt auction and signs of division re-emerging among eurozone leaders.

The FTSE lost 100 points to touch 5,391 after the start of trading in the US, where the S&P 500 fell 1% to 1,214, as eurozone politicians warned on the logistics of further fiscal integration.

In Germany, the Dax was down 1.4% at 5,694 while the French Cac 40 fell 2.1% to 3,014.

An earlier 5-year Italian debt auction yield of 6.47% marked the highest rate paid by the country since 1997, while the euro fell through the $1.30 level for the first time since January.

In the UK, the FTSE's largest faller was silver miner Fresnillo, which dropped 10.7% after the FTSE Group said it would be affected by new listings requirements and amid general concern over falling precious metal prices.

The gold spot price continued to fall, dropping another 1.3% to $1,608. The precious metal has now lost 6% since the start of the week, the spot price dropping close to its lowest level since the end of July.