The price of Gold in euros falls on Thursday, October 31

The price of Gold falls on Thursday, October 31, according to data from FXStreet.

He Gold price in euros It currently stands at €2,560.70 per troy ounce, losing 0.26% so far today.

Today, Thursday, Gold reached a daily maximum of €2,570.40 and a daily minimum of €2,557.36. On Wednesday, the price of Gold in euros reached a new all-time high at 2,577.96 and closed at 2,567.40, gaining 0.11% on the day.

So far this year, the price of Gold in euros has gained 36.66%.

The price of Gold is updated daily based on the market rates of the XAU/EUR pair taken at the time of publication.

What factors have influenced the price of Gold recently?

  • Uncertainty ahead of next week’s US presidential election and escalating geopolitical tensions in the Middle East suggest the path of least resistance for the safe-haven precious metal remains to the upside.
  • Gold price retreats from all-time high amid elevated US bond yields and lower Fed rate cut bets.

Gold FAQs

Gold has played a fundamental role in human history, as it has been widely used as a store of value and medium of exchange. Today, apart from its brilliance and use for jewelry, the precious metal is considered a safe-haven asset, meaning it is considered a good investment in turbulent times. Gold is also considered a hedge against inflation and currency depreciation, since it does not depend on any specific issuer or government.

Central banks are the largest holders of Gold. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and purchase Gold to improve the perception of strength of the economy and currency. High Gold reserves can be a source of confidence for the solvency of a country. Central banks added 1,136 tons of gold worth about $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the largest annual purchase since records exist. Central banks in emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are the main reserve and safe haven assets. When the Dollar depreciates, the price of Gold tends to rise, allowing investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken the price of Gold, while sell-offs in riskier markets tend to favor the 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 status as a safe haven asset. As a non-yielding asset, the price of Gold tends to rise when interest rates fall, while rising money prices tend to weigh down the yellow metal. Still, most of the moves depend on how the US Dollar (USD) performs, as the asset is traded in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold in check, while a weaker Dollar is likely to push up Gold prices.

Source: Fx Street

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