The ounce of gold in euros records profits after two consecutive days closing with losses.
He Xau/Eur has risen on Tuesday to a maximum of three days at 2,808.95 After trying a daily minimum at 2,785.35.
At the time of writing, the Gold quotes in front of the euro over 2,802.45, winning 0.47% in what we have been working on.
The Gold closed Monday at 2,789.32, losing 0.22% in the day.
From a year to this part, the price of Xau/EUR has risen 39.49%.
What factors have influenced the price of gold recently?
- Israel has approved new military plans on Tuesday to continue the war in Gaza. Israeli defense minister Israel Katz has warned Hamas that if he does not release the pending hostages, he will pay an increasingly high price. The conflict in the Middle East favors gold as a safe refuge.
- The United States and Ukraine have ended their second meeting in Saudi Arabia a few hours ago, although there have been no details of the conclusions.
- The restlessness to US tariff policy He continues to impulse the yellow metal, despite the fact that in the last hours Donald Trump has assured that there will be countries that will be exempt from reciprocal tariffs, without specifying which.
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.
