Europe down, gold gains
Shocking news from South Europe introduced a great confusion in the gold market.
More and more countries join the line for financial help from joint treasury, such as Greece, Portugal, Spain and Italy. Such state endangers the entire financial condition of the eurozone. Crisis situation favors those investors who keep their assets in gold. Others acquire the bullion in the hope of extraordinary gains.
Just in the span of the recent week the price of gold increased by 1.6% in USD. Upward trend had sustained throughout the entire period. On Wednesday in Europe gold was sold for 885.00 euro and based on the EUR/USD exchange rate nothing indicates that this Euroland’s highest price ever is going to last long. Substantial decrease of Greek bond rating and worrisome economic situation of the Iberian Peninsula states make the investors afraid to invest money on those markets and prefer to store it in dollars or gold.
Wednesday was the most nervous day in the gold market in Poland. Clients lined up in the queue to the Mint of Poland for the gold bullion. The mint was under siege during those days. At the moment, the price of gold per ounce in Polish zloty broke the level of 3,500.00. The price is affected by the growing price of gold at the London Bullion Market Association and strong dollar, which exchange rate in the National Bank of Poland exceeded 3.00 Polish zloty on Wednesday. High dollar price is perceived as good by Polish economic institutions. Nothing indicates that the upward trend counted in Polish zloty will change in the nearest time.
