Strong performance of Euro pushes gold prices up
February 21st, 2012 - 12:27 am ICT by Aishwarya BhattBrussels, Feb 20 (THAINDIAN NEWS) Optimism that a deal may be in sight in the Greek crisis has sent the euro rising. Analysts say the strong performance of the euro has also pushed the prices of gold up.
The price of gold has gone up by as much as 11 percent since the beginning of 2012. Gold has become the preferred security against losses for investors due to the loose monetary policy of the euro and the US dollar.
EU lawmakers have indicated that they have reached a new deal that will see Greece receive another bailout which will ensure that the country do not default on its payment. The country nearly failed to reach a deal last week but that was the pre-requisite for another bailout from the IMF and the European Union.
Under the new deal which was reached in the nick of time, Greece will receive another 130 million euro boost to the economy to prevent the country from going under.
Investment firm Morgan Stanley explained why gold will continue to be the best option for investors. A statement from the firm explained that, “The defensive nature of gold should continue to support investment demand as investors look for safe havens.”
- Europe agrees to 1 trillion euro fund for new bailout plan - Oct 27, 2011
- EU urges Greek debt deal to be reached without delay - Jan 24, 2012
- US stocks mixed as investors await Greek deal - Feb 18, 2012
- IMF approves another bailout tranche for Greece - Dec 06, 2011
- Eurozone approves new Greek bailout plan (Lead) - Feb 21, 2012
- Europe should help Greece to avoid crisis: Greek PM - Oct 16, 2011
- IMF approves $36 bn funding for Greece - Mar 16, 2012
- Eurozone reaches Greek bailout deal - Feb 21, 2012
- Euro falters over Italy, Greece political uncertainty - Nov 09, 2011
- US stocks edge higher amid Greek hope (Lead) - Feb 10, 2012
- Greece votes in parliamentary elections (Lead) - May 06, 2012
- German parliament passes Greece bailout deal - Feb 28, 2012
- EU urges Greece to reaffirm reform commitment - Nov 08, 2011
- S&P; cuts Greek sovereign rating - Feb 28, 2012
- Moody's downgrades Greece to lowest rating (Lead) - Mar 03, 2012
Tags: bailout, brussels, economy, european union, gold prices, greece, imf, investment demand, investment firm, investors, lawmakers, losses, monetary policy, morgan stanley, new deal, nick of time, optimism, preferred security, price of gold, safe havens