ADVERTISEMENT

Business

23 June comment on gold, gold price ounce, gram of gold, quarter of gold

ADVERTISEMENT

While the appetite for risk has decreased with the increase in the possibility of a recession in the markets; markets continue their Fed-oriented movement. So how are gold prices affected by these developments? Are gold prices more likely to go up or down? Murat Özsoy, founding partner of We Financial Consulting, evaluated all gold price developments at hurriyet.com.tr.

Senay Zeren

The price of the ounce of gold continues its movement focused on the US Federal Reserve (Fed). Continuing its movement in the narrow band for a while, gold showed a limited rise following Fed Chairman Jerome Powell’s remarks yesterday. Fed Chairman Powell, in his speech to the US Senate Banking Committee, said there is a risk of recession, but it is currently not high; “Inflation surprised us on the upside, we may face other surprises,” he explained. Following Powell’s remarks pointing out that the possibility of a recession is on the table, investors leaving risky assets have turned to safe havens.

GOLD RISES EVEN AFTER THE DECISION

On Wednesday, the Fed made its highest interest rate hike in 28 years, raising the policy rate by 75 basis points in line with market expectations and bringing the interest rate to 1.75%. Powell warned at the press conference that the interest rate would be between 3 and 3.5 percent at the end of the year. Gold prices, which prior to the Fed’s critical decision were at $ 1820, then rose to $ 1841.

The next meeting of the Federal Open Market Committee (FOMC), which sets the Fed’s monetary policy, will be held from 26 to 27 July.

Özsoy, co-founder of Biz Financial Consulting, in his assessment on hurriyet.com.tr, drew attention to the effect of US 10-year bonds on gold prices; “As long as the yield on the US 10-year bond is 3% higher, it would make sense to take a position on the gold side of the ounce during this period; Because I think if it falls below 3 percent, there will be strong upward momentum below the ounce. “

While the Fed tightening of monetary policy strengthened the dollar index; It also pushes US bond yields up and suppresses gold prices with the effect of inverse correlation. On the other hand, the Russia-Ukraine war and rising global inflationary pressure support gold prices with the support of a safe haven asset.

CLICK HERE FOR IMMEDIATE STATUS ON GOLD PRICES …

THE LAST SITUATION OF GOLD PRICES

While the price of gold per ounce rose from $ 1840 to $ 1847 following yesterday’s statements by Fed Chairman Powell; he started the fourth trading day of the week at $ 1837. An ounce of gold today is as high as $ 1846; while seeing the lowest level of $ 1823; In these minutes it is moving to $ 1842 with an increase of 0.29%.

While the price of the gram of gold started the new day with a decline; During the day it recorded the highest level of 1030.12 lire and the lowest level of 1018.18 lire. Gram gold, although rising due to the increase in the price of the ounce of gold and the dollar rate, stood at 1029.82 lire with an increase of 0.53 percent at 17:12. In the same minutes, a quarter of gold is exchanged for 1687 lire and the gold of the Republic for 6 thousand 947 lire.

While the prices of gold gram were moving at the level of 1026 lira at the closing time of the Turkish markets yesterday; started the new day at the level of 1023 lire.

THE NEXT CHANCE OF GOLD IS MORE

Murat Özsoy – Co-founder of Biz Financial Consulting

The ounce gold price continues to be influenced by Fed Chairman Powell’s speech this week after last week’s Fed meeting and, as a result of these effects, has failed to maintain a hold above the resistance of the dollar of 1844. On the downside, it does not fall below the support formed at the levels of $ 1820 and continues its movement in this band gap.

At the moment, I see the likelihood of the price of gold breaking the upward resistance of $ 1844 more than the likelihood of it entering a downtrend. In this case, the important indicator will be the yield on US 10-year bonds and the possibility of a downward move from 3.15% is considered high this week. As long as the yield on the 10-year bond in the United States exceeds 3 percent, it would make sense to take a position on the gold side of the ounce during this period; because if it falls below 3 percent, I think there will be strong upward momentum below the ounce.

As for gold in grams, we are following a course due to a slowdown in the rapid uptrend we have seen in the dollar-TL exchange rate in recent weeks. I think the stagnation of the Dollar-TL rate is temporary considering the current economic outlook. Therefore, in the context of the upside potential of the ounce of gold and the exchange rate, it is highly likely that the price of the gram of gold will rise from these levels.



labels

.

ADVERTISEMENT

Leave a Comment