Central Bank Action Fuels Global Gold Rally
Gold provides safe haven protection from crisis currencies
By Valentin Schmid, Epoch Times | January 23, 2015
Since Gold reached an all-time high of $1,923 in 2012 it is still down 33 percent in dollar terms. As global central banks started their easing efforts, gold now paints a much different picture in euros, yen and Canadian dollars.
“Gold is priced in dollars, so when a currency goes down against the dollar, there is an automatic reaction: Gold will go up in that currency,” explains Simon Mikhailovich of the Tocqueville Bullion Reserve Fund.
Let’s take the euro for example. After the European Central Bank (ECB) launched a quantitative easing program on January 22, it is now trading at levels not seen since 2003 ($1.12, down 7 percent this year).