He Price of the ounce of gold in euros has reached this Thursday a historical maximum at € 2,953.47 During the Asian session, although in the European session he has retreated and now records slight losses in the day after two previous days of profits.
The Xau/EUR closed yesterday over 2,931, 95, winning an important 2.40% in the day.
The price of gold in euros jumped to a record ceiling of € 2,953.47 in the early hours of Thursday, although it later lost traction and fell to minimums of the day in 2,911.24 in the European morning.
He XAU/EUR trades at this time on 2,929.86, losing 0.07% in what we take from the dayAda.
From one year to this part, the price of gold in euros has earned 30.44%.
What factors have influenced the price of gold recently?
- The White House threatened yesterday with imposing individualized 245% tariffs on Chinawhich promoted risk aversion, favoring safe refuge assets such as gold. China has replied that it will not pay attention to the US game but commercial tensions between the two countries continue to generate nervousness in the market.
- The European Central Bank will announce its decision about interest rates this Thursday at 12.15 GMT. A cut of 25 basic points is expected. The focus will be in the comments of the entity’s president, Christine Lagarde, and in the tone of the monetary policy declaration. The reduction in rates and comments that point to greater flexibility could weigh on the euro.
- Israel confirmed yesterday that he intends to remain indefinitely in Gazto. In the last hours, the Israeli army has murdered five Palestinians who camped in a displaced store in the north of the strip.
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.
