Gold

US manufacturing data has sent markets plunging again, with the S&P 500 down 4.5% and the UK and Europe also tumbling.

BlackRock's Evy Hambro, manager of the £2.8bn Gold & General fund, said gold should be trading about 30% above its current record high, taking inflation into account.

Gold has hit fresh high upon fresh high in recent weeks as investors flee rollercoaster markets in search of a ‘safe haven.'

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.