He Gold -ounce price in euros opens Monday with strong profits After showing losses for four of the five days of the previous week.
The Xau/EUR closed Friday at 2,868.17, winning a slight 0.11% daily.
He Gold price in euros uploads this Monday to six days at 2,926.71 after previously testing a daily minimum at 2,863.57.
At the time of writing, the Xau/Eur trades about 2,922.69, winning an important 1.90% in what we have been.
From one year to this part, the price of gold in euros has risen 35.85%.
What factors have influenced the price of gold in recent hours?
- The geopolitical factors are being key in the rise in the price of gold this Monday.
- He Israeli Prime Minister Benjamin Netanyahu promised to respond to the attack with ballistic missile Sunday. Netanyahu said that Iran would also face consequences for the attack. In response, Iranian defense minister Aziz Nasirzadeh said Tehran would counterattack if the US or Israel attacked. The tension in the area has reactivated the demand for gold as a safe refuge asset.
- In an interview broadcast on Sunday, Russian President Vladimir Putin declared that Russia has the media and strength to win the war in Ukraine without using nuclear weapons. Meanwhile, the Ukrainian army launched an air attack with 89 drones on Crimea during the night from Sunday to Monday. Russia has assured that it knocked all the devices.
- US President Donald Trump announced on Sunday a 100% tariff over all films produced in foreign countries. According to Haresh Menghani, an analyst at FXSTERET, Trump’s unpredictable commercial position concerns investors, promoting flows to safe shelters that help gold to extend their rebound from the minimum of last week about € 2,829.
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.
