Price of Gold in Euros

Pinnacle Digest writes: In this latest article from Adrian Ash, the relationship between gold and the euro are examined. Over the years, the price of gold in euros has remained much more stable than that of the USD v gold.

While some analysts believe that if the eurozone fallout continues, and we see added pressure on the ECB to print, it will be positive for the price of gold in euros. In other words, we could see a significant euro depreciation against gold - similar to what we saw with the US dollar in 2010 and 2011. With that said, so far the euro-crisis has done very little for gold and its euro purchasing power. In fact, all it has done is magnify the reality that the US dollar is still the only flight to safety for investors. Europeans have been accumulating foreign currencies -  none more so than the USD.

Gold and the euro have collapsed in value under the pressure of the eurozone crisis while the dollar has been on a record setting rise. Are the euro and gold considered to be much of the same from an investment standpoint? Surely not. Not that we agree with the dollar being a ‘flight to safety’ asset, but the facts speak for themselves.

Click here to read Ash’s article on the subject.