The ounce price of gold, which has been declining continuously since March, decreased from $ 2,030 to $ 1,712. Alright what now?
The ounce price of gold has been declining continuously since 9 March. Gold, which tested the highest level of $ 2,030 per ounce in March 2022, is now at $ 1,712. Gold is typically viewed as a hedge against inflation. Inflation is on the rise right now. On the other hand, there is a decrease in the ounce of gold instead of going up. The reason for this is the rising interest rates abroad. In particular, the increase in bond yields in the USA leads investors to this direction and leads to the disposal of gold. After all, investors consider opportunity cost. This causes savings on a global scale to turn to interest instead of gold.
When the FED’s hawkish rhetoric and the data on the employment market strengthened the 50-75 basis point rate hike, the gold trend was pushed aside. On an ounce basis, there has been a weak movement in a horizontal band since the beginning of the year.
2023 can be seen in 2023
So how does gold get in demand again? Unless there is a significant correction in the US dollar and bond yields, we may see the weakness continue in the short term. However, the maximum level of energy crisis towards the beginning of the year and the escalation of the tension between the countries will ensure that the levels of 2023 will be seen at the beginning of 2023.
In the short term, supports are at $1,687 and $1,670, while resistances are at $1,726 and $1,746 and $1,800.
Why does gold rise?
Gold is often seen as a safe-haven investment and a store of value. It is a commodity in which buyers are strong because it is also demanded as a commodity.
Speculators who accumulate gold and benefit from price movements also keep the price of gold vigorous.
Does it keep rising?
A continuous rise in the ounce price of gold should not be expected. Likewise, even if there are speculative movements in the price, it should not be seen as an instrument that can be speculated. There are ripples underneath. However, as with a stock, it will not be a correct point of view to buy with the thought that its price will double in a short time. Gold can be considered as a kind of ‘defense instrument’. It is a hedging instrument against the melting of the currency in the face of inflation. The gold demand of the world’s largest funds, the collection of gold by central banks, and the purchase of gold by pension funds for portfolio diversification are among the factors that keep the interest in gold alive.
What does gold mean to Turkish people? Why is he taking it?
Turkish people mainly trade on gram gold. He sees gold as a jewellery. He describes it as a commodity that he holds in the long term and that preserves its value. Therefore, the demand for gold has an ongoing nature.
If gold buyers wait for a long time, their returns can be high. Because when comparisons are made in the long term, gram gold stands out among investment instruments. On the other hand, gold, which is traded in dollars per ounce, is bought and sold in TL in the domestic market. Therefore, the rise in the dollar exchange rate causes the gold price to increase in TL terms.
In which direction is the gram gold price trend?
In the last 20 years, gold has only declined in 2013.
The biggest increases in prices took place in 2001 and 2021. While it increased by 119 percent in 2001, the rate of increase in 2021 was 74 percent.
It has been increasing by over 30 percent every year for the last 3 years.
It has gained 32.3 percent since the beginning of the year.