MCX Gold

Gold prices have extended their inimitable upside rally, gaining support from the debt turmoil in US & Europe. On European front, speculation is rife regarding the near collapse of French banking system. French bank stocks fell drastically on rumours that the country's AAA bond rating could be the next victim of the Europe's debt crisis. There is even talk that one major bank was selling gold in an attempt to remain solvent. Gold prices registered new life time highs of US$1,801/ounce. Adding salt to the injury in respect with the Europe crisis, Fitch Ratings cut Cyprus's long-term foreign and local currency ratings to BBB-, two notches from junk. Meanwhile, CME Group has raised margins on COMEX gold futures by 22.2% in order to control the speculative activity.