After the government’s currency-protected deposit account move gold prices was in a downward trend. The gold, which is behind the 1000 lira limit, has not yet recovered. Citizens wondered whether the downward trend would continue. Market experts, who made statements on the subject, made important predictions about gold and gave dates.
POWELL’S ANNOUNCEMENT HAS HIT THE GOLD PRICES
Market expert Mehmet Ali Yıldırımtürk made important statements about the future of gold prices. Yıldırımtürk said, “On one hand, gold prices are strong in foreign markets. dollarOn the other hand, it has been continuing its downward trend for a while due to high interest rate pressure. The fact that the US Federal Reserve raised interest rates by 75 basis points at the FED meeting on September 21 was in line with expectations. In addition, the statement of Powell, the Chairman of the US Federal Reserve, that ‘we are determined to reduce inflation’, was effective in lowering gold prices, more precisely, in increasing the dollar and interest rates.
GOLD CAN GO UNDER INTEREST PRESSURE
In this process, we see that with the breaking of $ 1650 an ounce of gold, it regressed to $ 1625. In the next period, there is a possibility that gold will be under interest and dollar pressure again. The Fed is expected to raise interest rates up to 100 basis points in the coming period.. Another development that will balance this is the recession concern.
THERE IS A REcession EFFECT ON MARKETS
There is a recession effect in the markets right now. But it has not been officially announced. Especially with the unemployment rates to be announced and the inflation data coming in a negative way than expectations, the expected 100 basis point interest rate hike may be lowered even more. This situation can remove the interest rate and strong dollar pressure.
DATE IS GIVEN FOR THE UPWIDE MOVEMENT OF PRICES
Maybe $1600 can be tested, but this can be seen as a short-term pullback. Upward movement can be seen in prices again towards the beginning of the year. I think we can see the levels of 1650 dollars in the first place and then 1750 dollars and 1800 dollars. The increase in prices in gold mining, the war environment and geopolitical developments are also effective in the increase in gold prices. Therefore, I do not think that gold will decline further. When we look at the past, we have seen that an ounce of gold has risen up to 2070 dollars. In this respect, I think that this level can be reached again in the coming period.
A NEW RECORD IS GIVEN FOR GRAM GOLD
Internally, the situation is different, especially with the exchange-protected deposit system, since there was not much movement in the foreign currency and it only rose slightly with the reflection of the new exchange rate, my end-year expectation was an optimistic estimate of 1250 liras. But in the market participants survey of the Central Bank, the year-end dollar forecast is 19.51 liras, after 12 months. exchange rate After the expectation was given as 22.07 liras, I can say that I predict a gram of gold to reach the level of 1450 liras.” said.
INVESTING IN GOLD IS A SAFE PORT?
Commenting on whether it is safe to invest in gold, economist Enver Erkan said, “As inflation accelerated, the Fed responded by raising interest rates and applying quantitative tightening.
But other central banks lagged behind in the pace and scope of Fed action. Higher returns as a result of higher comparative interest rates, as well as the dollar’s safe-haven status amid fears of a global recession, encouraged capital inflows and strengthened the dollar rate.
AT THE LOWEST LEVEL OF 14 MONTHS
The Turkish lira continues to slide against the dollar and sets a new record high as fears of a global recession dampen appetite for riskier assets. However, one-month implied volatility in the USD/TRY pair remains close to a 14-month low, indicative of expected volatility.
GOLD WATCHES NEW MOVEMENTS
Gold watches the new movement of the dollar. While gold has been seen as a traditional haven in times of economic distress, fears of a global recession fueled by central banks’ monetary tightening have triggered massive gains in the dollar instead. In periods when the dollar movement slows down, gold can benefit from the geopolitical and economic risk environment with its safe-haven effect.