Commodity markets slid by more than two per cent on Monday, tracking losses in Asian equities, as the euro crashed to a four-year low on growing worries about the single currency and economic stability in Europe.
Gold firmed towards a record, while bullion priced in euro and sterling struck all-time highs as investors sought a safe haven from volatile currencies as well as falling markets. Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose to a lifetime high of 1,214.065 tonnes. Bullion has gone up 13 per cent this year.
The euro fell almost 1.5 cents versus the dollar to $1.2237, its weakest in four years.
NYMEX crude also fell, losing more than 2 per cent to a three-month low.