The Gold ounce in euros records profits for the third consecutive day After closing on Tuesday around 2,828#, winning an important 0.89% daily.
This Wednesday, the Xau/EUR has risen from a minimum daily in the Asian session by € 2,820 to a maximum of the day at European noon at € 2,84.76. The increase places it very close to the maximum of three days reached yesterday in € 2,845.
He Gold price in euros is quoted when writing about € 2,842.67, winning 0.50% in what we have been.
From one year to this part, the Xau/EUR has won 30.98%.
Gold continues to benefit from uncertainty about trade agreements between the European Union and the United States
- The date of July 9 imposed by Donald Trump as a limit to impose its so -called ‘reciprocal tariffs’ is approaching, and the lack of restless agreements on the markets. A week after the extension is fulfilled, the US has only reached a complete agreement with the United Kingdom, and a partial one with China, which favors gold as a safe refuge.
- All information point on Wednesday that The European Union would be willing to reach an agreement with US In sectors such as pharmaceutical, commercial airplanes, semiconductors and alcohol. The EU will also try to reduce rates on cars, steel and aluminum.
- The Eurozona today published its May unemployment rate, showing an increase to 6.3% From the previous 6.2%, what has weighed on the euro in the last hours. On the other hand, Pierre Wunsch, a member of the European Central Bank, has pointed out today that it does not feel uncomfortable with the expectations for reduced market interest rates. Yesterday, Wunsch also declared that in case of a movement of the ECB, it would be down.
- Donald Trump announced last night that Israel had accepted a high 60 -day fire in Gaza. Waiting for Hamas and Israeli government itself to confirm the truce, the markets are cautious, allowing gold to continue moving forward.
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.
