Gold closes lower, with investors keeping an eye on the speeches of Fed officials

Gold closed lower this Tuesday (7), signaling price consolidation. In a week with few macroeconomic catalysts, metal investors follow comments from Federal Reserve officials (Fed, the US central bank).

On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold scheduled for delivery in June closed down 0.30%, at US$2,324.20 per troy ounce.

In a report, Bannockburn estimates that the fall in gold this trading session is still in line with the precious metal’s price consolidation range, calculated between US$2,275 and US$2,235 per troy ounce.

Chief Markets Economist at Spartan Capital, Peter Cardillo assesses that the geopolitical scenario is the main reason for the “reversal stage” in gold and silver prices, which closed down 0.24%, at US$ 27.303 per troy ounce on Comex. On the other hand, some fundamentals continue to support metals, such as the purchase of gold by Chinese consumers, points out Cardillo.

For TD Securities, there is limited room for a “continuous decline” in yellow metal prices, with the possibility of a more favorable macroeconomic environment attracting large-scale capital to the asset.

Capital Economics believes that the recent gold rally appears to have been excessive and high prices should serve precisely as an obstacle to a new upward trend. “We doubt that the metal will receive additional support, for example, from expectations about monetary easing from the Federal Reserve,” he predicts.

Today, the president of the Minneapolis Fed, Neel Kashkari, avoided ruling out the possibility of raising interest rates and stated that if the current scenario – of high inflation and economic resilience – persists, it is better for leaders to “do nothing” and let the unchanged rates. The comments helped strengthen the dollar abroad, which also tends to reduce the attractiveness of commodities, including gold, for holders of other currencies.