While the European debt crisis continues to take a toll on the Euro, investors have been pushing up the price of gold.
The Euro hit a four year low yesterday with the CurrencyShares Euro Trust (FXE) trading as low as $122.47 yesterday before closing at $123.48. The last time the ETF traded below $123 was in April 2006.
FXE is designed to track the price of the Euro net of trust expenses. The fund’s expense ratio is 0.40%.
At the same time, the SPDR Gold Shares (GLD) has been climbing, recently trading above $120 before pulling back slightly in the last couple of trading days. GLD tracks the price of gold bullion and carries an expense ratio of 0.40%.
Investore are moving to gold as a safe haven as the debt crisis in Greece has resulted in increased volatility in world markets. Also driving the demand for gold are new fears of inflation arising from the ECB’s recent decision to bailout Greece’s debt holders.
For more investing choices, see the list of currency ETFs.