Today’s Gold Prices: USD 1066.90, EUR 1007.68 and GBP 708.80 per ounce.
Yesterday’s Gold Prices: USD 1069.25, EUR 1009.25 and GBP 708.55 per ounce.
With sentiment very poor towards gold and silver today, it is important to realize that gold and indeed silver have outperformed other base and indeed the precious metals.
In fact, they have held up quite well in terms of the wider commodity sector. Indeed, they have also held up well in terms of other leading currencies such as the euro, Canadian dollar, New Zealand dollar, Australian dollar and other non dollar currencies. These have all fallen quite significantly against the dollar and indeed against gold year to date and in the last 12 months. Emerging market currencies have seen even greater routs against the dollar.
Gold is again acting as a hedge against currency depreciation and devaluation. Dollar and sterling investors have not needed a hedge in recent months given the buoyant dollar and indeed U.S. and UK equities and property.
This is likely to change in the coming months and then gold will come into its own as a hedging instrument and a safe haven asset.