He gold price in euros descends this Thursday After climbing on Wednesday to a maximum of three days in € 2,889 and close the day by € 2,875, winning 0.31% daily.
The Xau/EUR has risen in today’s European opening to a daily maximum of € 2,881.35, but subsequently fallen strongly, sliding to a minimum of the day in € 2,868. At the time of writing, the price of gold in euros quotes over € 2,870, losing 0.16% in the day.
From one year to this part, the Xau/EUR has gained 26.75%.
The possible new agreement between the EU and the US affects gold in favor of the euro
Gold depreciates in front of the euro before the possible agreement between the European Union and the United States, after Donald Trump said Wednesday that he was very close to reaching a commercial agreement with India and that he could also reach a pact with Europe. A reduction in 30% tariffs that the US said last Saturday that it would apply on the EU as of August 1, could extend the EUR rebound against Xau.
The Eurozona has published its June inflation datashowing a rebound in the annual general CPI, which has risen to 2% from 1.9% in May. In the European Union as a whole, prices increased a 2.3% year -on -year from the previous 2.2%, which has also favored the euro against gold.
In any case, the risk aversion that dominates the markets before Donald Trump’s fluctuations with tariffs and Israel’s new attack in Gaza, in which at least two people have died after the Israeli bombing of the only Catholic Church of Gaza, keeps the fall of gold limited.
Xau/EUR Price levels
The 14 -day relative force index (RSI) is located on the 50 line in short and long term graphics, indicating a consolidation at the current levels, but the movement shows an upward bias in the indicator in the 4 -hour graph, so the gold could recover land in front of the euro in the next few hours.
Downwards, the first support is waiting in the 100 -periods mobile average in daily graphics located at € 2,861. Below this level, the decrease could extend around € 2,840, where is the 100 -hour mobile average. A break in this region could lead to the Xau/EUR the area of 2,801/€ 2,800, minimum of July and psychological level, respectively.
In the north direction, the initial resistance is € 2,891, maximum of Monday. Above, the crossing can cross the region of € 2,900 in the direction of € 2,993, ceiling last June and the last two months.
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.
