Euro Gold Prices Continue to Climb

In the latest report from Bullionvault.com, the gold market and European economy are evaluated. Many economic threats in Europe are positively affecting gold’s value in Euros. Here in North America, all we’ve seen over the last 9 months is a falling gold price (gold in dollars), but in Europe, it has been quite the opposite. To clarify, “Euro gold prices have hovered around €1300 per ounce – 3.2% off its six-month high. The gold price in Euros has gained 8% since the middle of May” according to Ben Traynor.


If things weren’t already bad enough for the Eurozone, Moody’s reported that it has now put Germany, Luxembourg and Holland on negative watch. All three countries have Aaa ratings, which is quickly becoming a rare status in the western world. France and Austria were put on negative watch in February. Moody’s believes that the stress for Germany and the other fiscally strong Eurozone nations to help their lagging members financially could be enough to put all countries’ credit-worthiness in jeopardy.


With yields rising in Spain and Italy, and riots in both countries (with many Italians protesting to go back to the Lira) we can expect further downside pressure on the Euro. Gold should continue to perform well against the currency for the remainder of the year.


If investors begin to question Germany’s fiscal standing, that could be the end of the Euro as we know it.


On a positive note for the Europeans, Spain managed to sell just over €3 billion of three-month and six-month debt at an auction this morning, although borrowing costs were higher than at a similar auction last month.


Click here to read Ben Traynor’s full article.