London - Arabstoday
Gold prices rose in Europe yesterday as fears that Greece could be heading for a default, potentially sparking a banking crisis in Europe, hurt stock markets and prompted investors to seek out assets seen as lower risk. European shares fell 2.25 per cent in early trade, while the Stoxx Europe 600 Banking Index tumbled as much as 4 per cent. World stocks hit a fresh 15-month low. Spot gold was up 0.7 per cent at $1,668.19 (Dh6,126) an ounce at 0907 GMT. Other assets seen as a relatively safe store of value, such as German bunds and the Swiss franc, also climbed. Investors are still wary towards gold after it was caught up in a broad-based financial market rout in late September, which saw heavy selling of the metal to cover losses on other markets. Prices fell 20 per cent from the record $1,920.30 an ounce they hit early in the month.