He Price of the ounce of gold in euros opens the week registering its fifth consecutive day of profits and renewing its historical maximum about 2,890 €.
The Xau/EUR has risen this Monday from a daily minimum at 2,837.82 to its higher level from the existence of the crossing at 2,889.92.
The price of gold compared to the euro is quoted when writing about 2,881.04, earning an important 1.17% in what we have been working on.
The Xau/EUR closed Friday at 2,847.52, winning 0.62% daily.
From one year to this part, the price of the ounce of gold in euros has risen 36.65%.
What factors have influenced the price of gold recently?
- The Wall Street Journal reported Sunday that The US government is considering higher commercial tariffs against a broader range of countries as of April 2which has promoted the price of gold as a safe refuge for a new historical maximum in the European morning on Monday.
- The president of the USA, Donald Trump, shook the markets last week by imposing a 25% tariff on the non -American automobile sector as of April 3 before the so -called reciprocal tariffs enter into force on April 2, in the so -called ‘Liberation Day’.
- Trump was upset yesterday Sunday with Russian President Vladimir Putin, and threatened tariffs on Russian oil and possible bombings in Iran. Trump also lashed out at the Ukrainian President Volodimir Zelenski and warned that he would face major problems if he retired from the critical agreement on rare minerals. These events weigh on the feeling of investors, favoring global flight to safe assets.
- According to Europa Press, the Israel’s Army has issued a new evation order on Monday to all residents in the Rafa areain southern Gaza. During the weekend, Israeli bombings have ended the life of at least 64 peoplemostly civilians.
FAQS GOLD
Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.
Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.
Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.
The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
