He Gold price in euros re -registered profits on Monday After closing with losses on Friday. The ounce of gold in euros closed on Friday about 2,743.80, losing 0.38% in the day.
The Xau/EUR has tested a minimum of the day at 2,740.65 in the Asian session and then climb to a DIARY Maximum of 2,752.92 In the European morning.
The price of gold in euros is quoted in these moments about 2,751.95, winning 0.30% in what we have been working on.
From a year to this part, the price of Xau/EUR has risen 39.21%.
What factors have influenced the price of gold recently?
- This week is expected a high volatility in the markets, since several of the most important central banks will announce their decisions about interest rates. The ads of the United States Federal Reserve, the Bank of England, the Swiss National Bank (SNB) and the Bank of Japan can generate volatility in the markets, which could affect the price of gold.
- The leader of the German CDU, Friedrich Merz, reached a historical agreement with the greens to increase the expense in defense and security. After the announcement, which will imply the creation of a special fund of 500,000 million euros for infrastructure investments, Merz said that “Germany has returned.” This agreement supports the euro, being able to influence the contribution of the Xau/EUR for the next few days.
- Donald Trump has confirmed that reciprocal tariffs will take effect on April 2. In addition, the US president has reported that Tomorrow Tuesday could have an announcement on the peace agreement between Russia and Ukraine.
- A Attack with Israeli drones in northern Gaza killed at least nine people, including three journalistsSaturday. The Israeli army said their forces intervened to frustrate threats of terrorists. The Israeli army added that six dead men in the attack were identified as members of Hamas’s armed wings. Fears about a possible rupture of the truce strengthen gold as a safe refuge.
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.
