Find Out How The Greek Crisis Has Put Gold Coins On A Two-Week Run Directly At Gold-Coin.com
April 5, 2010 - Gold coins made a two-week run to end the first quarter of 2010 with $1126.10 as prospects for the embattled Greek economy remained grim. Moves coming from the EU and the IMF were anxiously awaited but it appeared that the moves would come later than sooner.
One analyst was heard to comment that the EU and the IMF seemed to prefer to watch from the sideline for the time being, assessing how long the precariously floating Greek economy would stay afloat and would throw the lifeline only when the actual sinking finally starts. A few days ago there were news reports that the IMF would help if asked but would help only under its own terms.
The prolonged drama had created some nervousness in the commodities market, among them gold. For sometime gold had been behaving with uncertain steps, barely keeping clear of the psychological level of $1100. But as the end of the first quarter came to a close, gold regained its footing and posted a confidence building sustained price increase over two weeks.
Several other factors contributed to gold’s price increase. Among these is the weakened US dollar amid an improving US economy. The dollar fell to the lowest level in almost two weeks against the Euro. April 2 numbers showed US dollar:Euro ratio at 1:1.3468.
A US Department of Labor report on improvement in the unemployment situation released shortly before the end of the first quarter revealed that the number of Americans queuing up for unemployment benefits had dropped by 6,000. The report was favorably received by investors and helped commodities like gold coins extend gains.
Price of crude oil rose beyond $85 a barrel, the highest in 17 months, in the face of increased demand. The demand was interpreted as sign of increased economic activity.
Michael Williams
Senior Staff Writer - Gold-Coin.com
