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01/04/2024 – 14:56
Gold closed higher and renewed its historic record this Monday, the 1st, as geopolitical tensions continue to be a recurring justification among analysts for the upward movement of the metal, seen as a safer store of value. Support for gold remains despite a dose of caution about the outlook for monetary relief in the United States, following better-than-expected activity data and comments from Federal Reserve President Jerome Powell. On Friday, the 29th, he said he considered it inappropriate to cut interest rates until there is confidence that inflation is on a sustained downward path, even with a well-behaved consumption expenditure price index (PCE).
On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold, scheduled for delivery in June, the now more liquid contract, closed up 0.84%, at US$ 2,257.10 per troy ounce, a new record historic. In March, the metal accumulated a gain of 8.94%.
On the geopolitical front, an act of aggression by Israel on Monday afternoon targeted the Iranian consulate building in the Mezzeh neighborhood of Damascus, the news agency reported. Sana.
Among the data released this Monday, the American industrial PMI measured by the Institute for Supply Management (ISM) rose from 47.8 in February to 50.3 in March. In addition to beating the forecast of 48.5 from analysts surveyed by FactSet, the index surpassed the 50 mark for the first time in 16 months, which points to an expansion of activity in this survey. The indicator came after US PCE inflation data, released on Friday, fueled hopes that the Federal Reserve (Fed, the US central bank) could start cutting interest rates from June.
The data boosted Treasury interest rates, which did not limit the movement of gold, which usually tends to behave in an inverse relationship with interest rates. As interest rates rise, gold tends to become less attractive compared to fixed income assets. Around 2:30 pm, the projected rate on US 2-year bonds rose to 4.710%. *With information from Dow Jones Newswires.
