He Gold price in euros reached Tuesday a new historical maximum at € 2,856.55. This Wednesday, the Xau/EUR goes back to minimum of two days.
In today’s Asian session, the price of gold in euros has tried a daily maximum at 2,798.80 but little by little it has been losing ground until it fell to a minimum of two days in 2,773.68 at noon European.
The price of gold in euros It is currently quote on 2,774.40, losing 0.78% in what we have been working on.
The Xau/EUR closed Tuesday at 2,796.15, losing 0.88% daily despite reaching a record during the day.
From one year to this part, the price of gold in euros has earned 48.34%.
What factors have influenced the price of gold recently?
- Israel has threatened to break the truce in the Middle East if Hamas does not deliver to hostages pending to be released before Saturday. The Israeli prime minister, Benjamin Netanyahu, has warned that the army ‘will return to the intense struggle until the definitive defeat of Hamas’ if the deadline is not fulfilled. For its part, the Palestinian Group has issued a statement pointing out that it will not proceed with liberation until Israel does not fully comply with what is signed in the agreement.
- The president of the United States, Donald Trump, signed executive orders to impose 25% tariffs on imports of steel and aluminum in the US from March 4. He also promised broader reciprocal tariffs to match the taxes that other governments charge on US products.
- Trump said he would consider imposing additional tariffs on cars, pharmaceutical products and computer chips, which fed concerns about a global commercial war and acts as a favorable wind for gold as a safe refuge.
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.
