He Price of gold in euros opened the week falling to a new minimum of eleven weeks and a half in € 2,770, but in the European morning he managed to recovershowing profits on the day after six consecutive days of losses. On Friday, the Xau/EUR closed at 2,794.02, losing an important 1.79%.
Today Monday, the ounce of gold in euros has fallen to a minimum not seen since April 9 by € 2,770 and then climb to a daily maximum in € 2,812.
He XAU/EUR quote these moments about 2,807.25, winning 0.47% in the day.
From one year to this part, the price of gold in euros has risen 29.46%.
Gold recovers land at the concerns for a lack of agreement between the EU and the US before July 9
- The Conversations between the European Union and the United States have not yet paid fruit for the reciprocal tariffs that Donald Trump paused until next July 9. The lack of agreement is weighing in the mood of the operators, which gives impulse to gold as a safe refuge against the euro.
- The advanced indicator of German inflation has shown a moderation of the consumer price index (CPI) of Germany. The CPI stagnated monthly in June (05) after growing 0.1% in May, below the 0.2% increase estimated by the market. At the annual level, inflation has been moderated at 2% from the previous 2.1%. For its part, the interannual harmonized CPC also dropped to 2% from the previous 2.1%, located two tenths below the 2.2% expected by consensus. The softing of German prices has weighed on the eurostrengthening gold in the last minutes, since it gives greater arguments to the European Central Bank for a new cut of interest rates in July.
- Israel continues to massacre the population in Gaza. Since last night, 45 people were killed after bombings on a refugee camp and several schools that also served as a refuge for the population. For their part, Israeli soldiers recognized orders to shoot indiscriminately over the population of Gaza at humanitarian aid distribution points.
- Ukraine received a massive Russian attack with more than 60 missiles and 460 drones between Saturday and Sunday, which resulted in the death of a driver of a Ukrainian hunting and in several wounded civilians. The persistence of the Russian-Ukrainian conflict and the Israeli invasion of Gaza keep the decreases of gold as a safe refuge assets.
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.
