GOLD TOUCHES $1,235 IN EUROPE

On Tuesday, gold reached $1,235 an ounce in Europe. The metal had touched a whopping $1,265 an ounce on Monday but came down later.

Ole Hansen, senior manager at Saxo Bank, was quoted as saying, “Both times gold reached $1,260 over the last week it has been instantly hammered $30-35 lower.” He further added, “The focus seems to have shifted back toward the strong dollar/weak commodity relation. This has increased the risk for a deeper correction.”

The euro fell down to a drastic low against the Swiss franc. Not only this, it slumped down to a 1-1/2 year low against the sterling.

The euro went down amidst rising concerns as banks have to pay back 442 billion euros on Thursday. This huge amount of money was borrowed last year at very low rates after the European Central Bank tried to resolve the financial crisis.

Metals also weakened as copper went down by almost 4 percent and other metals such as zinc and lead fell even lower.