He Gold price in euros rises for the third consecutive day this Friday, registering its highest level since June 25 On the last day of a week marked by Donald Trump’s decisions about tariffs.
On the last day of the week, the Xau/EUR has climbed to a roof of 16 days in 2,874 after having tried a daily minimum in 2,837.54. He Price of gold in euros quote these moments about 2,872.20, earning an important 1.09% daily.
From one year to this part, the ounce of gold in euros earns 30.06%.
Gold recovers its value as a safe refuge from Trump’s tariff madness
The tariff war unleashed by Donald Trump this last week has caused a return to gold as a safe refuge value. After the amazing US tariffs on Brazil (50%) and Canada (35), many are the countries that have not yet received the letter with the confirmation of what they will pay from August 1 that fear for higher rates than expected.
Besides, The delay in the announcement of agreement between the European Union and the United States is favoring gold over the euro. A pact was expected for this week, since on Tuesday Donald Trump said that the letter to the European Commission led by Ursula von der Leyen would arrive in a couple of days. The market fears Trump waits at the close of Friday’s market to make an advertisement that it is not clear to place the rates in the 10% that the EU is trying to agree.
Xau/EUR Price levels
With the Momentum indicator pointing to the rise in daily chart, the first resistance to the extension of the Gold advance is € 2,875, a ceiling of June 25. Above, the objective will be in the psychological zone of 2,900 before trying to assault the maximum of June in € 2,993.
Downwards, a mobile average breakdown of 100 in one -hour graph at € 2,832 could cause major falls to the surroundings of € 2,800, where the minimum of this week recorded on July 9 is.
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.
