Gold near record,silver at 30-mth high

Buying activity in both the precious metal commodities gained steam,as European stocks fell on reports that Germany8217;s ten largest banks were in need of fresh capital to meet the new EU regulations.

The European Union had tested 91 lenders in July this year,giving 84 of them passing grades.

European stress tests on lenders understated some banks8217; holdings of potentially risky government debt,the Wall Street Journal reported.

Market analysts said German lenders including Deutsche Bank needed to raise about 134 billion dollar to reach an estimated 10 per cent liquidity safeguard against the risk of sovereign debt. The Stoxx Europe 600 Index of shares slid as much as 0.8 per cent.

The metal also became dear to investors on reports that German factory orders unexpectedly fell in July. Gold prices usually move inversely to the greenback.