Boom in gold in Euroland
For those investing in gold, the last week was short but intensive.
By lending a helping held to the Greece in collapse, Europe reduced the value of its currency, thus becoming an Eldorado for sellers of the bullion. In Poland, confused investors made chaotic decisions on the purchase of gold for fear that it will soon become a deficit good. Next week looks equally interesting. Polish players expect depreciation of the US dollar, so they can buy gold at a better price.
Between 2 and 6 April, the London Exchange was closed due to the long Easter weekend. At the last fixing before Easter, as published on Maundy Thursday, gold was priced at USD 1,123.50 per ounce. A week later an ounce of gold cost over USD 1,150.00. The price of gold expressed in the Euro showed an interesting fluctuation. The hard situation in the EU caused by financial problems of Greeks contributed to a rapid rise in the price of metal. On Thursday, it surpassed the threshold of EUR 865.00, thereby beating the March record and reaching the highest value in the history of Euroland. Such a high price expressed in EUR was strongly influenced by the EUR/USD rate, which, at the end of the week, was even 1.32, thus being the lowest in weeks.
The value of gold sold at the Mint of Poland over the last week rose by about 3%. On Monday, an ounce of the gold bullion cost approximately PLN 3,215.00 and on Friday – over PLN 3,310.00. The last days were quite untypical because both the gold price and the US dollar were going up. Usually, a rising dollar is accompanied by a falling price of bullion and vice versa. Until Thursday, the USD was going up hour by hour. On 8 April the average USD/PLN rate at the National Bank of Poland was 2.8975, but already on Friday the dollar was bought at the rate of 2.8657.
