He Price of the ounce of gold in euros renew historical maximums per fourth consecutive day This Tuesday.
On Easter Monday, Gold closed in front of the euro over 2,976.07, winning 1.64% in the day.
Today Tuesday, the Xau/EUR has opened the Asian session testing a minimum daily at 2,965.91 and then Shoot in the European opening to a record ceiling at € 3,035.96.
The price of gold in euros is quoted at the time of writing about 3,009.42, winning an important 1.12% in what we have been.
From a year to this part, the price of Xau/EUR has won 36.94%.
What factors have influenced the price of gold in recent hours?
- Uncertainty about high tariffs imposed by US President Donald Trump, and its impact on the global economy continues pushing the price of safe refuge gold to new historical maximums This Tuesday.
- Trump’s unstable position on commercial policies, along with his attacks against the president of the US Federal Reserve, Jerome Powell, keeps investors on alert, promoting the price of gold.
- Trump accused Jerome Powell, president of the FED, of not acting quick enough to reduce interest rates. The market fears that the Republican president dismisses Powell if he does not cut interest rates at the Central Bank meeting in May. The questioning of the independence of monetary policy in the US concerns markets and weighs on world bags.
- On the geopolitical front, the Russian forces launched 96 drones and three missiles in the east and south of Ukraine after the high Easter fire, which lasted 30 hours. For his part, Russia has reported that it knocked down ten Ukrainian drones in the regions of Crimea, Belgorod and Oriol.
- Israel has returned to bombard infrastructure in the Gaza region during the early morning. For its part, the authorities of the Hamas controlled strip has communicated on Tuesday that since its attacks on Israel on October 7, the victims in the strip have elevated 51,250 dead.
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.
