Gold Prices in Euros rising 'due to fears over Greece and Spain'
The rally of Gold Prices in Euros and Pounds Sterling to record highs and the growing resilience of spot prices highlights the precious metal's appeal as a hedge.
That is according to one analyst, who explained that gold continues to gain momentum because of the difficulties being endured by the world's leading currencies.
Peter Hillyard, head of metals sales at the ANZ Bank, which is the fourth largest bank in Australia and has assets of $335 billion, told the news provider that the yellow metal is increasingly being seen as an insurance policy against fiscal instability in Europe.
He was quoted as saying: "People have real fears about what is going to happen in Greece and Spain and the effect it is going to have on the euro, and they are saying the only thing that is safe and secure is gold."
Meanwhile, James Steel, a New York-based precious metals analyst at HSBC, which has assets of nearly $2.4 trillion, said that developments in China are also increasingly having a bearing on global Gold prices.
He said that inflation in the eastern country is a major concern and that money tightening and likely interest rate rises would be supportive for gold, the Financial Times reports.
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