He Gold -ounce price in euros records its fourth consecutive day of falls This Wednesday and descends at its lowest price in three days.
The Xau/EUR closed Tuesday at 2,913.43, losing 0.45% daily.
The ounce of gold in euros has fallen on Wednesday to 2,878.70, its lowest price in what we have been. Previously in the day, the Xau/EUR tried a daily maximum in 2,920.73.
He Xau/EUR quote at the time of writing at 2,882.75, losing 1.05% daily.
From one year to this part, the price of gold in euros has risen 33.81%.
What factors have influenced the price of gold in recent hours?
- President Donald Trump signed an order on Tuesday to relieve the effects of tariffs on the automobile industry, giving the manufacturers two years to increase the proportion of national pieces in assembly vehicles in the US in the US. The news was well received by the market, generating hopes for a decrease in commercial tensions between the US and China and weighing on the demand for gold.
- In the geopolitical front, Russia dismissed Ukraine’s proposal to extend the high unilateral fire of three days to 30 days. For his part, the US threatened to stop his efforts to end the conflict between Russia and Ukraine if both parties did not present concrete proposals.
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.
