The ounce of gold in euros records profits on Monday After closing Friday in negative.
He Xau/Eur move today in a narrow range located between a daily minimum of 2,783.74 and a maximum of 2,802.46.
At the time of writing, the Gold quotes in front of the euro over 2,798.37, winning 0.09% in what we have been working on.
Gold closed Friday at 2,795.56, losing 0.35% in the day.
From one year to this part, the price of Xau/EUR has risen 39.63%.
What factors have influenced the price of gold recently?
- Since last night, the Israeli attacks on Gaza have caused a total of 16 victims. Yesterday, the forces of Israel murdered five more people in a hospital in the strip. For his part, the Israeli executive has confirmed the death of Salah Bardawil, political leader of Hamás. Tensions in the region give gold backing as a safe refuge.
- According to the Wall Street Journal, Donald Trump is planning a smaller and more specific agenda for the so -called reciprocal tariffs that will take effect on April 2. This, in turn, increases the appetite of investors for more risk assets and limits greater increases in the price of gold as a safe refuge at the beginning of the week.
- US delegations have been having conversations with Ukrainian officials as part of the peace negotiations and will meet with Russian officials on Monday to continue with the negotiations. Trump and Russian President Vladimir Putin agreed earlier this month a 30 -day break in Russian attacks on Ukraine energy facilities.
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.
