Gold closes higher and renews record, overcoming caution about the Fed

Gold closed higher this Tuesday (2), extending the rally to the sixth consecutive session and renewing the historic record, even in the face of a dose of caution about the outlook for monetary relief in the United States. The metal continues to benefit from the reading of a store of value asset for inflation scenarios, at the same time that demand signals from Central Banks, especially from China and India, continue to support prices.

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 1.09%, at US$ 2,281.8 per troy ounce, a new record historic. The metal extends gains for the second session in a row in April, after ending March with an accumulated gain of 8.94%.

The sequence of six consecutive increases in contracts is the longest since March 11, 2024, when the metal rose for eight consecutive sessions, according to Dow Jones Newswires.

With gold on the rise, the momentum could be attracting more traders to exchange-traded funds like the VanEck Gold Miners ETF.
Conditions in the markets overall could also be favorable for gold, according to Mike McGlone, an analyst at Bloomberg Intelligence. McGlone highlighted moderate volatility in equity markets. The VIX Volatility Index, Wall Street’s so-called fear gauge, remains near more than a decade lows even after a spike on Tuesday, while Treasury yields continue to rise.

The interest rate projected by the 10-year T-Note rose to 4.3610% around 2:54 pm (Brasília time). This Tuesday, directors of the Federal Reserve (Fed, the US central bank) once again expressed cautious opinions. The president of the Cleveland district, Loretta Mester, stated that it is necessary to have more information about the trajectory of inflation, before deciding to cut interest rates, and added that she does not expect to have the level of information necessary for this decision until the next decision of the Fed.

With information from Dow Jones Newswires