He Price of the ounce of gold in euros records profits for the second consecutive day this Wednesdayreaching its maximum price since May 13.
The Xau/EUR closed Tuesday at 2,915.87, winning an important 1.47% in the day.
Today Wednesday, the Gold price in euros has risen from a daily minimum at 2,909.06 to a maximum of eight days at 2,933.71.
The Current Xau/EUR quote is 2,924.46, winning 0.30% in what we have been working on.
What factors have influenced the price of gold in recent hours?
- The American Intelligence Services warned that Israel could be preparing an attack on Iranian nuclear facilitieswhich has aroused concern in the markets and has favored the impulse of gold as a safe refuge.
- On the other hand, the Israeli attacks on the Gaza Strip have continued during the night, causing the death of 70 people. Yesterday, the European Union told Israel to review its commercial cooperation agreement as a measure against the systematic violation of human rights over the Palestinian population. The intensification of the conflict and the increase in international pressure against mass attacks on the strip supports the increase in gold.
- Martin Kazakshead of monetary policy of the European Central Bank, said Wednesday that Interest rate cuts are close to the end if the base stage is maintainedsuggesting new cuts in the next meetings. The comment has favored the impulse of gold against the euro in the short term.
Mexican weight FAQS
The Mexican weight (MXN) is the most commercialized currency among its Latin American peers. Its value is widely determined by the performance of the Mexican economy, the country’s central bank policy, the amount of foreign investment in the country and even remittance levels sent by Mexicans living abroad, particularly in the United States. Geopolitical trends can also affect MXN: for example, the Nearshoring process (or the decision of some companies to relocate the manufacturing capacity and supply chains closer to their countries of origin) is also considered a catalyst for the Mexican currency, since the country is considered a key manufacturing center in the American continent. Another catalyst for MXN is oil prices, since Mexico is a key exporter of the raw material.
The main objective of the Central Bank of Mexico, also known as Banxico, is to maintain inflation at low and stable levels (in or close to its 3%target, the midpoint of a tolerance band between 2%and 4%). To do this, the bank establishes an adequate level of interest rates. When inflation is too high, Banxico will try to control it by raising interest rates, which makes the indebtedness of homes and companies more cooling, thus cooling the demand and the economy in general. The highest interest rates are generally positive for Mexican weight (MXN), since they lead to higher yields, which makes the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken the MXN.
The publication of macroeconomic data is key to evaluating the state of the economy and can have an impact on the valuation of the Mexican weight (MXN). A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN. Not only attracts more foreign investment, but it can encourage the Bank of Mexico (Banxico) to increase interest rates, particularly if this fortress is accompanied by high inflation. However, if the economic data is weak, the MXN is likely to depreciate.
As an emerging market currency, the Mexican weight (MXN) tends to rise for periods of risk, or when investors perceive that the general market risks are low and, therefore, are eager to participate in investments that carry a higher risk. On the contrary, the MXN tends to weaken at times of market turbulence or economic uncertainty, since investors tend to sell higher risk assets and flee to the most stable safe shelters.
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.
