He Gold of Gold Price in euros opens Monday with profits After closing the previous week with losses, arriving on Thursday at its lowest price in a month and a half.
The Xau/EUR closed Friday at 2,867.93, losing 0.97% daily.
This Monday, the price of gold in euros has moved between a daily minimum of 2,867.58 and a maximum of three days briefly tested Friday at 2,905.15.
The XAU/EUR price at this time is 2,880.86, winning 0.45% in what we have been.
From one year to this part, the price of gold in euros has risen 28.10%.
What factors have influenced the price of gold in recent hours?
- He United States Treasury Secretary, Scott BesentSunday declared CNN News that President Donald Trump could impose the reciprocal tariffs of April 2 to the commercial partners who do not negotiate in “good faith” in the agreements. These statements give impulse to gold as a safe refuge at the beginning of the week.
- He Israeli Prime Minister, Benjamin Netanyahu, said Monday in which Israel will occupy the entire Gaz stripa to take control of the Palestinian territory. The president has recognized the growing pressure of his allies and has assured that he will allow a small entry of humanitarian aid, although he has been impassive to continue his plans to control the territory. Confirming this intention, An Israeli army spokesman has warned the residents of several areas of the southern Franaja that leave their homes before the imminence of an unprecedented attack. During Sunday, Israel’s bombings and attacks on the Palestinian population have caused more than 130 deaths. The intensification of genocide on the strip also generates caution among investors, promoting the price of gold.
- The conversations that took place in Türkiye between Russian and Ukrainian repressors did not achieve a high fire agreement. It has been confirmed that the US president Donald Trump will speak on Monday separately with Vladimir Putin and Volodimir Zelenski To try to reach a consensus.
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.
