Update: FTSE 100 slumps as gold purchasing soars

Fallen 1.1% to 7,323 points

The FTSE 100 tumbled in morning trading as the City headed back to work after the Bank Holiday weekend amid increasing geopolitical tensions.

The UK's leading benchmark had fallen 1.1% to 7,323 points by lunchtime with supermarket giant Morrisons leading the way, falling 3.3% to 243p, while ITV also dropped 2.9% to 156p. In the currency markets, the euro climbed 0.56% against the US dollar to €1.205 in intraday trading, the first time it is above €1.20 since January 2015, as the market has priced in little chance of a US interest rate rise in September contrary to the Federal Reserve policy makers' current forecasts. According to the BBC, the euro is up almost 15% against the dollar this year and has strengthened considerab...