He Gold of Gold Price in euros records profits for the fourth consecutive dayreaching a New historical maximum this Friday.
The Xau/EUR has risen on the last day of the week from a minimum daily at 2,828.13 to its higher level from the existence of the crossing at 2,861.13.
The price of gold compared to the euro is quoted when writing about 2,847.92, winning 0.64% in what we have been working on.
The Xau/EUR closed Thursday at 2,829.90, winning 0.76% daily.
From one year to this part, the price of the ounce of gold in euros has risen 39.33%.
What factors have influenced the price of gold recently?
- The president of the United States, Donald Trump, announced late Wednesday that he will impose 25% tariffs for all cars not manufactured in the US. “This plan is 100%permanent,” said the Republican president, while his secretary of Commerce, Howard Lutnick, pointed out that these rates will begin to be applied as of April 3.
- Regarding the reciprocal tariffs that will be announced on April 2, Trump said that in many cases they will be little severe but there will be no exceptions.
- The risk aversion climate has been imposed in the markets since then, supporting the rise in gold as a safe refuge asset. He Impact of tariffs on the automobile sector in Europe can be considerable, so European stock markets operate in red At the end of the week, with Eurostoxx 50 losing 0.72%, the German Dax 0.54%and the French CAC 40 0.51%.
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.
