The ounce of gold in euros records profits per second consecutive dayrising to maximums not seen since February 25.
He Xau/Eur has risen on Wednesday to a maximum of four weeks at 2,810.47 After trying a daily minimum at 2,793.67.
At the time of writing, Gold is quoted in front of the euro over 2,806.25, winning 0.27% in what we have been working on.
The Gold closed Tuesday at 2,798.65, rising 0.33% in the day.
From one year to this part, the price of Xau/EUR has risen 39.59%.
What factors have influenced the price of gold recently?
- He US President Donald Trump imposed a secondary tariff to Venezuela warning that any country that bought oil or gas in this country would pay additional 25% taxes in its products exported to the US.
- Besides, Trump is expected to announce retaliation tariffsthat they would compensate for tariffs on American goods and that would come into force on April 2. It is rumored that these tariffs affect approximately 15 important US business partners.keeping investors in suspense, and favoring gold as a safe refuge.
- Russia and Ukraine have reached an agreement to stop military attacks in the Black Sea After the negotiations mediated by the US, this pact is added to the last week of not attacking the energy facilities.
- After the mortal attacks by the Israeli army in Gaza, hundreds of Palestinians demonstrated yesterday in the north of the strip requesting that Hamas abandon power.
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.
