Gold Reached its Lowest Price since 2010

Euro / LP1894.021907.89-0.73% 
Euro / Dollar1.25641.2656-0.73% 
NEER Index**140.08139.600.34%8.54%


Demand for the dollar steadied over the prior week as reflected by the Lebanese pound’s peg against the dollar that remained at $/LP 1,510-1,514 with a mid-price of $/LP 1,512, since the 4th of September, 2014. Foreign assets (excluding gold) at the Central Bank rose by a monthly 0.97% from $38.05B by August to $38.42B by end-September. Meanwhile, the dollarization rate of private sector deposits stood at 65.89% in August compared to 66.13% in December 2013.

The Dollar strengthened this week, after the US Federal Reserve ended its quantitative easing. Thus, the euro lost 0.73% against the dollar, ending the week at €/$ 1.2564.

The robust greenback shifted demand away from gold, driving the price of gold from $1,231.89/ounce last Thursday, down to its lowest level since 2010, at $1,198.64/ounce this week.

By Friday October the 31st, 2014, 12:30 pm Beirut time, the dollar-pegged LP appreciated against the euro going from €/LP 1,907.89, the prior week, to €/LP 1,894.02. The Nominal effective exchange Rate (NEER) gained 0.34%, weekly, to 140.08 points, widening its year-to-date gain to 8.54%.

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