The price of Gold in euros fell this Monday for the second consecutive day, falling to three-day lows, according to data from FXStreet.
He The price of Gold in euros is currently at 2,624.20, losing 0.17% daily.
Gold today reached a daily maximum of 2,632.85 euros per ounce and a three-day low at 2,615.10.
On Friday the price of Gold in euros closed at 2,628.50, losing 0.31% on the day.
From one year to this point, the price of Gold in euros has gained 41.76%.
What factors have influenced the price of Gold recently?
- After the ceasefire signed in the Middle East, Hamas freed 3 Israeli hostages on Sunday after 471 days of captivity while Israel released 90 Palestinian prisoners early on Monday. The cessation of the conflict has boosted risk appetite, weighing on the price of Gold as a safe haven.
- In the context of the ceasefire agreement between Israel and Hamas, the hopes that Trump can relax restrictions on Russia in exchange for a deal to end the war in Ukraine remain favorable for the positive risk tone. Meanwhile, Russia has announced the downing of 33 Ukrainian drones while Ukraine has reported that it has shot down 93 Russian drones and attacked Russian military targets in Kazan.
- The United States will celebrate today Monday, January 20, the inauguration of Donald Trump as president of the United States. The markets will be very attentive to Trump’s inaugural speech, as he could announce measures that impact raw materials, stock markets and currencies. The softness or harshness of these measures can affect the price of Gold at the end of the day.
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, aside 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

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.