He Gold ounce price in euros remains firm above the € 2,900 area per fifth consecutive dayshowing the solidity of the demand for gold to the important conflicts in the Middle East.
Yesterday Tuesday, the Xau/EUR closed at € 2,950, winning 0.78% in the day. Today, Wednesday, the ounce of gold in euros has risen to a maximum of two days in € 2,958.09 but has subsequently backed up a daily minimum in 2,931.95.
He Gold price in euros is currently quoted at 2,938.96, losing 0.38% daily.
From a year to this part, the price of Xau/EUR has risen 35.96%.
What factors have influenced the price of gold in recent hours?
- The president of the United States was willing yesterday to intervene against Iran. The ayatollah Ali Jameneimaximum Iranian representative, He has responded today to Donald Trump through Iranian television that his country will not give up and that “an US attack will have serious and irreparable consequences”. The climbing of the conflict keeps gold in the foreground as a safe refuge value, containing the extension of the setbacks.
- Meanwhile, Israel has bombarded several uranium centrifuging production centers during the night. The Iranian ambassador to Geneva, Ali Bahraini, responded to these attacks ensuring that his country will not renounce his uranium enrichment plan.
- In Gaza, Hamas has asked the population to avoid “mortal traps falsely presented as aid delivery points” after yesterday’s massacre that left about 50 dead in Jan Yunis.
- The member of the European Central Bank, Fabio Panettasaid Friday that “The ECB is not previously committed to a defined course in monetary policy “adding that the perspectives of the Central Bank They face substantial risks and difficult to quantify.
- Mario Centeno, a member of the ECB, has declared in the last minutes that “he is very concerned about growth in Europe”, highlighting that a stronger economy is needed so that 2% inflation can occur. The statements of the monetary policy of the European Central Bank are braking today a rise in the euro, which helps to limit the recent setback of the Xau/EUR.
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.
