He Gold of Gold Price in euros records losses per fourth consecutive daysliding to minimal not seen since April 9.
Yesterday Wednesday, gold in euros closed about 2,845.49, losing a remarkable 2.11% in the day
He Xau/Eur On Wednesday, testing a daily maximum in 2,851.67, but it has been giving ground until it fell into the European opening to its lower price in five weeks at 2,788.88.
At the time of writing, the Gold price in euros has taken some impulse and quotes about 2,820.71, even losing 0.87% in what we have been.
From one year to this part, the Xau/EUR has won 29.70%.
What factors have influenced the price of gold in recent hours?
- The president of the United States, Donald Trump, has declared Thursday that Iran has accepted the terms of an agreement and that are very close to reaching a pact. Besides, Trump suggested that he could attend the conversations between Russia and Ukraine in Türkiye Friday is appropriate. Both news have raised market optimism, causing a decrease in gold, considered a safe shelter asset.
- Israel has killed more than 80 people in Gaza since Wednesday morning. Among the victims there are at least 22 children. The bombings on the population have focused on Rafah and Jan Yunis. The conflict in the region contains greater falls in the price of yellow metal.
- The EUROZONA has published today the preliminary gross domestic product (GDP). The economic growth of the region was 0.3% intertrmetral in that period, above the previous 0.2% but below the expected 0.4%. At the year -on -year, GDP has maintained its growth in 1.2%, in line with the expected. The news of a growth lower than the estimated in the euro zone has driven the price of gold compared to the euro, although the price remains in negative territory.
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.
