He Gold of Gold Price in euros records new maximums per third consecutive dayreaching a roof not seen since last May 9.
The Xau/EUR closed yesterday at 2,925.23, winning 0.32% in the day.
Today Thursday, the Gold price in euros has risen to two -week maximums at 2,950.48although later he has corrected at a minimum of the day at 2,924.18.
The xau/EUR price at the time of writing is 2,926.61, winning 0.05% compared to yesterday’s closure.
From a year to this part, the price of gold in euros has gained 31.58%.
What factors have influenced the price of gold in recent hours?
- The president of the United States, Donald Trump, reported on Wednesday to the European Union that Russian President Vladimir Putin is not ready to end the war against Ukraine since he believes he is winning. As reported by the Wall Street Journal, Trump went from suggesting sanctions to propose lower level conversations in the Vatican between the Russian and Ukrainian authorities. The news favors the impulse of gold as a safe refuge value.
- He Israel’s siege on Palestinian territory continues this Thursday. Israeli military shot at a diplomatic delegation from 26 countries that visited a refugee camp in the city of YenÃn. On the other hand, Israeli Prime Minister Benjamin Netanyahu said that all Gaza will be under the control of Israel. The intensification of the Israeli occupation and the massive murders of the population in the Gaza Strip continue to support the yellow metal.
- The data EUROZONA MANUFACTURES AND SERVICES PMI have been below expectations In the preliminary readings of May, avoiding an impulse of the euro against Xau.
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.
