Gold closes lower with geopolitical tensions contained

04/23/2024 16:11

O gold closed slightly lower this Tuesday (23) as concerns about escalating tensions between Iran and Israel eased.

The decline in the dollar and Treasury interest rates also served as an impetus for the gold price.

On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold scheduled for delivery in June closed down 0.18%, at US$ 2,342.10 per troy ounce.

“There are several headwinds,” commented Commerzbank in a report.

In addition to the “depreciation” of geopolitical risks, the bank cites expectations of high interest rates in the USA as another bearish factor for gold.

Gold remains at historically high level

Commerzbank believes, however, that the potential for further decline in the metal’s price should remain limited.

Even with Tuesday’s devaluation, the price of gold continues to hover around historically high levels, after the strong recent rally.

Analyst Carsten Menke, from Julius Baer, ​​said he has a more measured view on the narratives that the market has used to explain the metal’s upward bias.

“We view gold’s recent decline from its highs as a test of these narratives and remain cautious,” Menke wrote in a note to clients.

“Judging by the real data on underlying demand, they are not as strong as perceived at first glance”, he added, regarding the gold.

With Estadão Content