Gold closed modestly higher this Friday (26), but suffered losses of approximately 3% in the weekly variation, in a period marked by new uncertainties about the US economy and the Federal Reserve’s (Fed) interest rate trajectory. On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold scheduled for delivery in June closed up 0.20%, at US$ 2,347.20 per troy ounce, but fell 2.76% in variation weekly.
New doubts about the American economy returned to pressure on gold this trading session and reduced the precious metal’s gains by strengthening the dollar and reducing interest losses on Treasuries. Divergent data amplified the uncertain picture: on the one hand, analysts project that it is still possible to cut interest rates this year; on the other, pessimism about the inflation trajectory raises hypotheses about monetary easing only in 2025.
Today, the consumer spending price index (PCE), the Fed’s preferred measure of inflation, came practically in line with market expectations in March, but confirmed an acceleration in prices in the first quarter, with a revision to above the monthly variation of January. The final survey by the University of Michigan pointed to a deterioration in American consumer sentiment and high inflation expectations.
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Analysts at BMI – a unit of Fitch Solutions – assess that the renewed strength of the dollar and the removal of expectations of interest rate cuts by the Fed should interrupt the rally in gold prices. However, experts consider that geopolitical tensions in the Middle East will continue to provide a “firm floor” for the precious metal, with resistance at the level of US$ 2,400 per troy ounce, and a further escalation of conflicts could trigger a new jump in prices. of the commodity.
For Commerzbank, another support point for gold prices should be Chinese demand. According to the China Gold Association, consumption of the precious metal increased by 5.94% in the country compared to the previous year, to 308.91 tons in the first quarter. The purchase of bars and coins alone rose 26.77% between January and March, to 106.32 tons, representing around a third of total consumption.
*With information from Dow Jones Newswires
Tags: Gold closes higher doubts Fed interest rates remain radar
