Gold soars 2% on Portuguese banking worries
Adam Pike, News Editor
10 Jul 2014, 3:36 p.m.
The gold and silver price has risen sharply as the solvency of Portugal’s largest bank was put into question. Traders became concerned when Espirito Santo Financial Group missed a debt payment causing stock markets to fall and debt yields to rise. Shares in the bank fell a dramatic 17%.
Yields on Europe’s most indebted countries rose as the news reminded investors the euro zone is still vulnerable to a sovereign debt crisis.
U.S equities also experienced significant declines as the fears in Europe spread to the other side of the Atlantic.