While this is not noticed by most people, because they focus only on the dollar price of commodities
, the euro price of gold hit a new high today, rising for the first time ever above €1,000 per ounce of gold. When this is written the dollar price of gold was $1,236 per ounce, while the euro stood at 1.2278, implying a euro price of gold of approximately €1,008 per ounce. This is roughly 30% higher than 6 months ago, when the euro peaked against the dollar.
I bet those European central banks are glad they sold off gold now
In part this increase in the price of gold probably represents an increase in inflationary expectations in Europe, and in part it reflects general safe haven demand.