The ounce of gold in euros is registering losses on Friday after four previous consecutive days of profits They took Thursday to a maximum of 24 days at € 2,809.79. In any case, the price of gold in euros maintains weekly profits, winning 1.80% at this time.
He Xau/Eur move the last day of the week in a range of 15 euros. After trying a daily maximum at 2,807.25 at the beginning of the day, the pair has fallen to a minimum of the day by 2,792.67 at the end of the Asian session.
After the European noon, the Gold quotes in front of the euro over 2,797.84, losing 0.28% in what we have been.
The Gold closed yesterday in front of the euro at 2,805.26, winning 0.38% in the day.
From one year to this part, the price of Xau/EUR has risen 40.15%.
What factors have influenced the price of gold recently?
- Both Russia and Ukraine intensified air attacks on Thursday in the midst of truce conversationswith the Ukrainian front attacking the Engels of Russia Air Base in the Saratov region with attack drones, causing a fire and explosions in the area.
- The Ukraine Air Force said Thursday that Russia had launched 171 drones on its territory. Meanwhile, Russian and American officials have scheduled conversations about Ukraine in Saudi Arabia on Monday after the agreement between Donald Trump and Vladimir Putin to respect energy facilities in their attacks.
- Israel resumed the strong attacks in Gaza on Tuesday, causing about 400 deaths and breaking the fire with Hamas that was in force since the end of January. Hamas shot three rockets towards Israel yesterday Thursday, without causing victims.
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.
