Editor's Note: Is greed good? Watch Charles Krauthammer, James Carville and Doug Casey battle it out in the most anticipated political debate on investment. Brought to you by Kitco Media, it will be a riveting Conservative vs. Liberal vs. Libertarian debate that you'll be talking about for years to come! And Kitco.com is the only place to watch it. Register Now.

(Kitco News) - Currency fluctuations affected the price of gold widely in the third quarter, as gold priced in U.S dollars rose 11.1% per ounce, but only 5% in Indian rupee terms per 10 grams, the World Gold Council said Thursday.

In its third-quarter investment statistics report, the WGC said after gold’s gain in U.S. dollar terms, the next biggest rise was in Chinese yuan terms, up 9.9% per gram. Gold rose 9.6% per ounce as measured versus the euro, 8.3% per gram in Japanese yen terms and 7.9% per ounce versus the British pound.

Year-to-date, as of the end of the third quarter, gold prices gained 17.3% in yen terms, which is the strongest of the six currencies listed, the group said. Second is the 17.1% gain in euro terms. Gold is up 16% year-to-date in U.S. dollar values. Gold rose 15.8% in yuan terms and 15.2% in rupee terms, year-to-date. Sterling rounds out the bottom, with gold up 11.6% on the year.

WGC said gold’s strong performance began in earnest in the latter half of August, with central bank policy announcements and actions in late August and early September pushing values higher.

Gold and other assets are being supported by the central banks’ unconventional monetary policy, but the WGC said that the policy affects gold in more than just the fear of rising inflation. Gold is also being supported by the unconventional global central banks’ actions via concerns of currency debasement, a hedge against sharp financial market pullbacks and interest by savers and investors to shift funds to real assets, they said.

The yellow metal is being affected by more than just central bank actions, the WGC added.

“It is critical to note that while gold prices react to monetary policy developments, they are more generally determined by a geographically and thematically broad set of factors. A number of positive gold-specific developments also took place in the third quarter, including the IMF’s (International Monetary Fund) reporting of central bank purchases of gold by Russia, Turkey, Ukraine and the Kyrgyz republic. Just before the start of the third quarter, Turkey announced that it had raised to 30% the proportion of gold held by commercial banks as capital requirements. This requirement will likely boost demand as Turkish commercial banks use gold as part of their capital portfolios,” the group said.

By Debbie Carlson of Kitco News dcarlson@kitco.com

<<Back to more Kitco exclusive news