Gold closes lower with caution over war and an eye on inflation in the US

Gold closed lower this Friday (22) with cautious investors amid progress in negotiations between the United States and Iran, but still without concrete definitions. Additionally, the market watched the inauguration ceremony of Kevin Warsh as president of the Fed (Federal Reserve).

On Comex, the metals division of the New York Stock Exchange (Nymex), gold for June ended down 0.42%, at US$ 4,523.2 per troy ounce, falling 0.85% in the week. Silver for July fell 0.70% to US$76.199 per troy ounce, falling 1.73% weekly.

A source interviewed by the Wall Street Journal stated that the versions of the agreement that have been circulating in the press since Thursday are inaccurate. Even so, US Secretary of State Marco Rubio confirmed that progress had been made, but warned that an agreement between the two countries is still not certain.

This Friday, Pakistan sent its commander to Tehran, according to Al Hadath. The news is interpreted as a good sign, as the expectation was that the Pakistani would only travel when a final version of the agreement was finalized.

For Sucden Financial, headlines about the possible end of the conflict provide a floor to gold's declines, but high yields limit upside. "The result is a subdued, sideways session where declines attract interest but rallies have difficulty extending as the dollar strengthens."

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In TD Securities' assessment, inflationary concerns, higher interest rates and a strong dollar are putting pressure on precious metals. For the consultancy, gold could see a sharp drop in the coming days, reaching the level of US$ 4,350.

In the macro scenario, Kevin Warsh took over as the new president of the Federal Reserve, recognizing the challenges in controlling the agency's dual mandate of inflation and employment.

Earlier, the director of the American Central Bank Christopher Waller said it was "crazy" to talk about cutting interest rates in the US in the near future, amid a lower-than-expected drop in consumer sentiment and rising inflation expectations.

*With information from Dow Jones Newswires.

Source: CNN