Gold Prices Soar Today on EU Bank Loan Loss Fears

Gold prices took off early in the day as reports from the European Central Bank said the banks in the region could experience another round of loan losses, this time up to $237 billion over the next year and a half.

The uncertainty of the economic fallout from Portugal, Italy, Ireland, Greece and Spain have investors concerned over how deeply it will impact the economy, and how far it'll spread to other nations, making gold the choice for those looking for safety.

News that China manufacturing dropped in May also reminded investors of some of the vulnerabilities there which could dramatically reduce economic activity there and abroad.

Gold futures were trading at a two-week high Tuesday in response to the news.