April was a turbulent month across global financial markets, with notable declines in stocks and public bonds.
However, gold and the U.S. dollar shone brightly, standing out as the top investments.
Rising geopolitical tensions and concerns about U.S. monetary policy significantly impacted equities, real estate funds, and bonds.
Particularly affected were volatile long-term Treasury IPCA+ securities.
The Ibovespa index dropped 1.70% to 125,924 points, reflecting similar downturns in American and European markets.
Meanwhile, the Real Estate Funds Index (IFIX) decreased by 0.77%, reversing earlier gains.
In currency markets, the dollar appreciated, demonstrating the resilience of the American economy.
It climbed 3.53% against the Brazilian real, closing at R$ 5.19 and R$ 5.17 in the spot and PTAX markets respectively.
Gold advanced, benefiting from renewed conflicts in the Middle East and significant central bank purchases.
It ended April up by 6.74%, as tracked by the Brazilian ETF GOLD11.
Conversely, bitcoin declined over 10% in real terms during its anticipated halving month, becoming April’s worst performer.
April’s investment outcomes varied widely, from gains in gold and the dollar to losses in certain public securities and the Ibovespa.
April Sees Gold and Dollar Shine Against Market Volatility
Early April witnessed escalated tensions in the Middle East with an Iranian attack on Israel. This initially raised gold prices, seen as a safe haven amid geopolitical risks.
Yet, the broader impact on risk assets was minimal, perceived more as a power display without further escalation.
U.S. interest rate hikes negatively affected global markets, driven by robust U.S. economic and inflation figures.
These developments raised expectations for persistently high rates, pushing U.S. Treasury yields higher and devaluing stocks, real estate funds, and inflation-linked bonds.
The strengthening dollar gained support from expectations that U.S. Treasury yields would remain attractive, influenced by fiscal uncertainties in Brazil and revised interest rate projections.
Overall, April emphasized a shift to safety amid mounting uncertainties, with investors turning to gold and the dollar as refuges from the falling equity and bond markets.