Hidden depths of the crisis ahead of us?
A suspicion that Portugal might be the next EU country to become bankrupt, motivated European investors to locate their capitals in gold bullion.
Another factor affecting gold prices within the last week was a scandal involving Goldman Sachs – the bank known to store its resources in the form of investment gold. In result of such turbulences on world markets, investors are afraid that the current economic recovery is temporary, and the hidden depths of the crisis are still ahead of us.
The passing week started with gold price reduction on world markets. On Monday the gold price amounted to USD 1,127.50 per ounce. However, the reduction was short-lived. From Tuesday till Thursday the value of gold went gradually up, thus weakening the dollar. Unfavorable data coming from Portugal as well as news on successive unclear activities undertaken by the Greek government were the cause of a sudden weakening of the EUR/USD relation. On Thursday, one euro was purchased for USD 1.3308. Gold prices calculated in European currencies are close to their high levels observed in the beginning of April. At the end of the week, the price of one ounce of gold reached almost EUR 860.00 in Euroland, and in the United Kingdom it exceeded GBP 740.00.
Within the last dozen or so days, no sudden changes have been observed on the Polish gold market. The price of one ounce remains at the level of PLN 3,200.00 – 3,300.00. Disturbing information from other countries stimulated some investors to start wholesale gold buying at the Mint of Poland. Within the last week, Monday was the most favorable day for purchasing gold in Poland. At ROE USD/PLN 2.9009, the price of one ounce of gold in PLN amounted to approx. 3,270.00.
