Current Exchange Rates with Charts and Historical Data

Anyone who buys precious metals in euros bears two risks simultaneously: metal price risk (fluctuation of the dollar price) and currency risk (fluctuation of the EUR/USD rate). In some market phases both effects reinforce each other — for instance when the dollar appreciates and the gold price rises at the same time. In other phases they neutralize each other: gold falls in dollars, but the weaker euro cushions the loss.

For long-term precious metal investors this interplay is particularly relevant because currency movements can account for a significant portion of total returns over years. Between 2014 and 2015 the gold price in euros rose by over 10%, although it actually fell slightly in dollar terms — the strong dollar made the difference.

Since the introduction of the euro in January 1999, the EUR/USD rate has traversed an enormous range. It started at 1.1747, fell to an all-time low of 0.8225 by October 2000, and subsequently rose to an all-time high of 1.6038 by July 2008. After that it settled into a corridor between 1.05 and 1.25, with occasional outliers — such as the brief parity (1:1) in September 2022.

This fluctuation range of over 80 cents shows how massively the exchange rate affects the euro gold price over the long term. A euro investor who bought gold in 2000, when EUR/USD stood at 0.85, paid significantly more per ounce in euros than an investor who bought at a rate of 1.50 — even at an identical dollar price.

ECB monetary policy is a central lever for the euro exchange rate. Interest rate hikes strengthen the euro because they make euro-denominated investments more attractive. Rate cuts and monetary easing (Quantitative Easing) weaken it by expanding the money supply and depressing European bond yields.

For precious metal investors an interesting pattern emerges: loose ECB policy weakens the euro and makes gold more expensive in euro terms — even if the dollar price stagnates. At the same time, low real interest rates reduce the opportunity cost of gold (which pays no interest) and push the dollar price higher. In such phases gold can rise particularly strongly in euros because both effects work in the same direction.

On 15 January 2015 the Swiss National Bank (SNB) unexpectedly abandoned the minimum exchange rate of CHF 1.20 per euro that had been in place since September 2011. Within minutes the franc surged by around 30% and the EUR/CHF rate plummeted from 1.20 to briefly below 0.85. It was one of the most dramatic events in foreign exchange history.

For precious metal investors the franc shock had immediate consequences: the gold price in Swiss francs fell sharply despite a stable dollar price due to the massive appreciation. At the same time, Swiss storage fees and refinery costs for euro investors increased abruptly. The episode illustrates how sudden exchange rate shifts can change the effective precious metal price in a foreign currency.

According to estimates, Switzerland processes around two-thirds of the world's refined gold. The four major refineries in Ticino refine raw gold from all over the world into standardised bars. For European investors who buy through Swiss dealers or store their gold in Swiss bonded warehouses (freeports), the EUR/CHF rate is therefore commercially relevant.

Bonded warehouses in Zurich, Geneva and other Swiss cities offer precious metal storage without VAT, as long as the metals remain in the warehouse. Storage fees are typically charged in CHF. A strong franc makes these costs more expensive for euro investors, a weak franc makes them cheaper. For larger holdings, the exchange rate trend can noticeably affect storage costs over the years.

The Brexit referendum in June 2016 triggered the sharpest depreciation of pound sterling in decades. The EUR/GBP rate jumped overnight from 0.76 to over 0.83 — the pound lost around 10% of its value against the euro. In the following years, uncertainty about trade relations between the UK and the EU remained a dominant factor for the currency pair.

For precious metal investors Brexit had an indirect but noticeable effect: the LBMA Gold Price, which is set in London, is the global reference for the gold price. British dealers who calculate in pounds experienced a marked rise in the gold price in their home currency due to the depreciation. For euro investors trading through London, the price structure also changed.

The Bank of England (BoE) pursues an inflation target of 2% and adjusts the base rate (Bank Rate) accordingly. Different interest rate levels between the BoE and the ECB drive the EUR/GBP rate. If the BoE raises rates more than the ECB, the pound appreciates (EUR/GBP falls); if it cuts more, the pound depreciates (EUR/GBP rises).

For precious metal investors BoE policy is indirectly relevant: high UK interest rates strengthen the pound and can make gold purchases via the London market relatively more expensive for euro investors. Conversely, a weak pound makes London as a trading venue cheaper for euro buyers.

The London Bullion Market Association (LBMA) operates the world's largest over-the-counter market for gold and silver. The LBMA Gold Price, set daily at 10:30 AM and 3:00 PM London time, serves as the global benchmark for central banks, mining companies, jewellers and investors. The LBMA Silver Price, Platinum Price and Palladium Price are also set in London.

The LBMA Gold Price is quoted in US dollars but is additionally published in British pounds and euros. The conversion is made at the exchange rates prevailing at the time of the fixing. Since London is the main trading venue for physical gold, the EUR/GBP rate influences transaction costs for European market participants who buy or sell gold through London trading banks and vaults.