Gold

J.P. Morgan is expecting investor enthusiasm for gold to hold firm and drive the precious metal to $2,500 by the end of this year.

Investment bank Goldman Sachs has raised its gold price forecast after the commodity smashed the $1,700 barrier this morning to hit a new nominal high.

Global markets climbed overnight on news the US has agreed a solution to its debt crisis, which will ease fears of the country losing its AAA-credit rating.

President Barack Obama has announced a deal to end the US debt crisis, which will raise the nation's debt ceiling by at least $2.1trn and cut the federal deficit by as much as $2.5trn over a decade.

Q&A - US DEBT CRISIS

Bank shares climbed in early trading, regaining some ground after Friday's stress test results caused sharp falls in the UK's major banks.

Gold broke the $1,600 barrier in early trading today as markets awaited further developments in the US and eurozone.

Gold hit a further record high yesterday afternoon as Ben Bernanke said the Federal Reserve was prepared for QE3 while increasing risk of contagion in the eurozone worried investors.

Central banks have pulled 635 tonnes of gold from the Bank for International Settlements (BIS) in the past year, the largest withdrawal in more than a decade, the FT reports.

BlackRock's Evy Hambro has backed the recent trend of strong dividend growth among gold miners to continue off the back of soaring gold prices.