He Price of gold in euros records profits on Tuesday per second consecutive dayreaching its higher price since last March 4.
He Xau/Eur He opened the Asian session testing a daily minimum at 2,745.97 and has gained traction with the passing of the hours. In the European morning, the pair has reached 14 -day maximums in 2,766.99.
The price of gold in euros is currently quoting about 2,765.25, winning 0.64% in what we have been working on.
From one year to this part, the price of Xau/EUR has risen 39.52%.
What factors have influenced the price of gold recently?
- Israel has broken the truce with Hamas by launching an attack on Gaza that has killed more than 400 people. The Israeli prime minister, Benjamín Netanyahu, has threatened to intensify the attacks while the US has approved the rupture of the truce, protecting that Hamas has not complied with the delivery of hostages agreed in January. The growing tension in the region is benefiting gold as a safe refuge, taking the Xau/USD to new historical maximums about $ 3,030.
- He Russian President Vladimir Putin and his American counterpart Donald Trump will hold a telephone conversation this Tuesday between 13.00 and 15.00 GMT To try to reach a peace agreement with Ukraine. Trump recognized yesterday that although many aspects have been agreed, there is still much to do, lowering expectations before Moscow’s demands.
- The operators remain pending the details of the German agreement to increase infrastructure and defense spending, which reinforces the euro and prevents major losses against gold.
- This week high volatility in the markets is expected, since several of the most important central banks will announce their decisions about interest rates. The ads of the United States Federal Reserve, the Bank of England, the Swiss National Bank (SNB) and the Bank of Japan can generate volatility in the markets, which could affect the price of gold.
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.
