Gold closed lower this Tuesday (30), as investors align expectations for the Federal Reserve’s monetary decision (Fed, the US central bank) amid fears of prolonged tightening. This perspective supported the rise of the dollar and Treasury yields (fixed income public debt securities of the US government), to the detriment of the precious metal.
On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold scheduled for delivery in June closed down 2.3%, at US$ 2,302.90 per troy ounce. During the month, the precious metal appreciated 2.9%.
The broad expectation that interest rates will be maintained by the Fed tomorrow and the wait for new monetary policy signals put pressure on gold this trading session, say experts at S&P Angel. The consultancy notes that markets expect a stricter tone from leaders in the statement, following stronger-than-expected inflation. Historically, high interest rates undermine appetite for gold in favor of the dollar and Treasury yields.
Fill in the fields below so that an Ágora specialist can contact you and learn about more than 800 available product options.
Thank you for registering! You will receive a contact!
Still on the radar, data from China’s industrial PMI showed that the sector remains in expansion territory – despite divergences in readings from S&P Global and the Chinese statistics office – and a report from the World Gold Council pointed out that China represented a large part of demand for the metal in the first quarter of 2024.
However, Julius Baer argues that there are still not enough fundamentals to justify the recent gold rally, even with signs of “strong Chinese demand and continued purchases by central banks”. For the bank, these factors should support gold prices at structurally high levels, but not enough to break new barriers.
“We doubt that these investors will have the resources to pay higher prices for gold. Consequently, we remain cautious and project that gold should fall to US$2,200 per troy ounce in three months and to US$2,000 in the next twelve months”, predicts Julius Baer.
ANZ maintains a “positive view” on gold prices. “A healthy correction appears likely before a new rally to the level of US$2,500 per troy ounce occurs,” says the bank.
