The ounce of gold in euros records losses at the beginning of the week, falling at its lowest price since last Tuesday, July 1. On Friday, the yellow metal closed at € 2,832.23, winning 0.13% daily.
The Xau/EUR has started on Monday with a rise to a daily maximum of € 2,837.82 to later fall Minimum of six days at € 2,807,264.
He Price of gold in euros quote at the time of writing about € 2,817.41, losing 0.53% daily.
From one year to this part, the Xau/EUR has won 28.81%.
Gold goes back despite the lack of agreement between the European Union and the United States; Good European data published today favor the euro
- Two days after the deadline of July 9 imposed by the president of the United States, Donald Trump, to impose reciprocal tariffs on his commercial partners, the Republican has only reached total or partial agreements with the United Kingdom, Vietnam and China. The European Union and the US have not announced any pact yetbut this fact is not giving up to gold as a safe refuge, due in part to the hopes of truce in the Middle East and the good European data published today.
- The Eurozone has published its index of Investor Sentix confidence, which has risen 4.5 points in Julyits highest level in three and a half years. On the other hand, the Retailers from the euro zone grew 1.8% per year in Mayimproving the 1.2% expected. In Germany, industrial production has risen 1.2% in Mayexceeding the planned 0%, while at the year -on -year level it has grown for the first time in 25 months. The data has reinforced the price of the euro against gold.
- The hope of a high fire between Israel and Hamas in Gaza has also caused the recoil of gold in the last hours. The Israeli leader, Benjamín Netanyahu, has traveled to Washington to meet Donald Trump today in the White House. It is presumed that Trump will press his Israeli counterpart to agree on a truce with Hamas. The Palestinian group described the proposal as positive last Friday.
GOLD – FREQUENT QUESTIONS
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.
