He Gold of Gold Price in euros records losses per third consecutive day Tuesday.
The Xau/EUR closed Monday over 2,926.48, losing 0.25% in the day.
This Tuesday, the price of gold in euros has fallen in the Asian session of a daily maximum in 2,932.04 to a minimum of the day at 2,903.98.
He XAU/EUR trades at this time about 2,910.98, losing 0.53% in what we have been in the dayto.
From one year to this part, the price of gold in euros has risen 33.69%.
What factors have influenced the price of gold in recent hours?
- The United States Treasury Secretary, Scott Besent, said Monday that many of the main US business partners had made “very good” tariff proposals, which improved the feeling of the marketaffecting the price of gold.
- He Market awaits with caution but certain optimism a tariff relaxation between the US and China After Besent pointed out last night that depends on Beijing to take the first step in the de -escalated. For his part, China’s Foreign Minister Wang Yi, said the concessions would only make ‘the most aggressive thug’, but admitted that dialogue can help solve differences.
- Besides, Donald Trump is expected to announce in the next few hours a relaxation of tariffs to the automobile sectorwhich also promotes the mood of the market.
- He Russian President Vladimir Putin declared a unilateral fire of 72 hours In the Ukraine conflict as of May 8, although the president of Ukraine, Volodimir Zelenski, dismissed the three -day truce. The participation of North Korea in the war between Russia and Ukraine maintains the geopolitical risk at stake while the US threatened Russia over the weekend with sanctions if it did not facilitate the conversations of agreement.
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.
