Panic in the gold market in Poland.
Weak economic data, not only from Greece, Portugal or Spain, but also from superpowers, such as Germany as well as from day to day declining zloty, caused a rapid growth of gold price in the Polish market.
On Friday morning, the price per ounce exceeded 3,980.00 PLN scoring a price record of the gold bullion of February 2009.
An average gold ounce price at London Bullion Market Association amounted to 1,185.00 USD last week. The highest prices topped at the end of week, hitting the level of 1,200.00 USD per ounce on Friday. Such high prices were reported only in December 2009. Currently we are experiencing a state of simultaneous growth of gold and of American currency. The EUR/USD exchange rate on Friday was equal to 1.266 and was the lowest in the past 14 months, which caused a substantial growth of gold price in European currencies. During the fixing on Thursday morning, one could buy the yellow bullion for 922.764 EUR or 783.088 GBP, whereas the Friday morning resulted in subsequent increase of gold prices. It is very likely that in the nearest future Europeans will buy gold for more than 1,000.00 EUR per ounce of gold.
Throughout the passing week the price of gold counted in Polish zloty grew by 7.3%. The main factor affecting such result is the depreciating zloty. The average USD/PLN exchange rate in the inter-banking market reached the value of 3.32 and EUR/PLN up to 4.20. As for now nothing indicates that this tendency is going to change. Both factors affecting the gold price in Poland, i.e. the exchange rate of American dollar and of London Gold Fixing increase the value due to harsh economic situation of European states.
