He Gold price in euros has reached a new historical maximum on Monday at € 2,819.60. The Xau/EUR reaches record levels for the fourth consecutive day.
This Monday, the price of gold in euros has opened the Asian session testing a minimum daily at 2,774.65, to shoot the European noon to a new historical roof of € 2,819.60.
He Price of gold in euros currently quotes about 2,816.51, winning 1.68% in what we have been working on.
The Xau/EUR closed Friday at 2,769.94, winning 0.74% daily.
From a year to this part, the price of gold in euros has earned 50.18%.
What factors have influenced the price of gold recently?
- The president of the USA, Donald Trump, said Sunday that he will introduce new 25% tariff to the United States. Trump added that he would announce reciprocal tariffs to all countries and match their tariff rates, which reinforces the price of gold as a safe refuge At the beginning of the week.
- Investors are still concerned that Trump’s commercial policies can exercise upward pressure on inflation both in the United States and in countries affected by tariffs, which favors risk aversion and drives gold.
- He Vice Minister of Foreign Affairs of Russia, Mikhail Galuzin, said there are no satisfactory proposals to initiate conversations about Ukraineand that the statements of the West and Ukraine are nothing more than noise. It is assumed that the US vice president, James David Vance, will go to Germany this week to expose the details of the United States proposal.
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.
