Gold Closes at $4,693 (-1%): Hormuz Tensions and Macro Data Curb Rallies

Today's trading session for precious metals concluded with a widespread downward trend, despite ongoing geopolitical tensions in the Strait of Hormuz. Gold ($XAU) experienced a 1.00% drop, closing at $4693.40 per ounce. Silver ($XAG) followed a similar pattern, retreating 1.29% to $75.43.

The afternoon session did not bring significant advances for the metals, and prices adjusted lower. Although news regarding the Strait of Hormuz and the United States' stance of not accepting Iranian control persisted, it was not enough to counteract selling pressure. A relevant piece of data that emerged during the afternoon was the retraction of public inflation expectations in the United Kingdom, according to a Citi/YouGov survey. While this data is from a specific country, it can influence the global perception of inflation and, consequently, the attractiveness of safe-haven assets like gold.

Platinum group metals also suffered notable losses. Platinum ($XPT) closed with a 1.83% fall to $1993.20, while palladium ($XPD) depreciated 2.01% to $1479.50. Copper ($HG), on the other hand, showed remarkable resilience, trading practically flat with a minimal variation of -0.02% to close at $6.09. This stability in copper suggests that underlying industrial demand, or the lack of new bearish catalysts, is cushioning overall market pressures.

Closing by Metal

* **Gold (XAU):** $4693.40 USD/oz (-1.00%). Retreat after morning gains, influenced by the retraction of inflation expectations in the UK and the persistence of unresolved geopolitical news.

* **Silver (XAG):** $75.43 USD/oz (-1.29%). Silver followed gold's trend, closing below key levels.

* **Platinum (XPT):** $1993.20 USD/oz (-1.83%). Widespread selling pressure affected platinum.

* **Palladium (XPD):** $1479.50 USD/oz (-2.01%). Palladium experienced the largest percentage drop among precious metals.

* **Copper (HG):** $6.09 USD/oz (-0.02%). Copper showed resilience, remaining near its opening level.

Session Driver

The main force that contained rallies and generated selling pressure in the afternoon session was the release of data on inflation expectations in the United Kingdom, which showed a retraction. Although not a direct global impact data point, it sends a signal about the potential moderation of inflationary pressures in developed economies, which could reduce the attractiveness of precious metals as a hedge against inflation.

Tomorrow

Investors should closely monitor the evolution of tensions in the Strait of Hormuz, as any escalation or de-escalation could have an immediate impact on metals. Furthermore, manufacturing data from the Eurozone is expected, along with appearances by members of the U.S. Federal Reserve, whose statements could offer clues about future monetary policy, a key factor for the spot price of metals.

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