Brazilian Interest Rates Slip as Oil Prices Fall, Gold Prices Decline

On June 26, Brazilian interbank (DI) futures fell across the curve, with the January 2027 contract dropping to 14.050%, the lowest level since May 2026. The decline was driven by a near‑10% weekly fall in Brent crude to around US$ 72, which eased inflation expectations and spurred market bets on a reduction of the Selic rate in August. Domestic data showed unemployment steady at 5.6%.

Meanwhile, gold prices ended the week down about 3.5%, despite a modest rise on Friday that lifted the August contract to US$ 4,096 per ounce. The metal’s pullback was linked to a weaker U.S. dollar and lower yields on Treasury securities, while geopolitical tensions in the Middle East – notably Iranian drone attacks on vessels in the Strait of Hormuz – kept some safe‑haven demand alive.

Both markets illustrate how falling oil prices and evolving geopolitical risks are shaping expectations for monetary policy and investor risk appetite worldwide.