Gold prices have recently taken a very active course. Investors are also following the price change with curiosity. The sharp drop in the ounce gold price on Friday officially scared gold investors. So what happened on the last trading day of the week?
THE PRICES OF GOLD HAVE RETURNED FROM THE BOTTOM OF THE 6 MONTHS
Starting the week at $ 1827, an ounce of gold fell in 4 trading days. An ounce of gold, which hit $ 1784 on Friday, hit a 6-month low. After seeing the lowest level during the day, an ounce of gold rose to $ 1812 and then ended the week at $ 1811. The ounce of gold depreciated 0.30 percent on a weekly basis.
The pivot level of $ 1800 an ounce is a critical threshold. If an ounce of gold hangs below the psychological threshold of $ 1800, a continuation of the price decline can be expected. The ounce of gold, which briefly fell below this level on Friday, managed to hold above $ 1800 again.
WHY ARE THE PRICES OF GOLD FALLING?
In particular, the monetary tightening of the US Federal Reserve (Fed) since March causes central banks in other countries to raise interest rates. Against rising global inflation, central banks have drawn the weapon of interest.
While central bank interest rate hikes are effective in suppressing downward inflation, it also increases the possibility of economies entering recession. As interest rates rise, consumers and businesses are borrowing at a higher rate. This situation is the main factor in the recession of the economy.
While US inflation broke a 41-year record, the Fed made the toughest move in 28 years by raising the benchmark rate by 75 basis points in its last meeting. The gold market is discounting the possibility that the US economy may go into recession.
THE DOLLAR INDEX EXCEEDS LEVEL 105
While recession fears have caused all commodities, especially precious metals, to fall, the dollar index has once again broken above the 105 level. The global appreciation of the dollar is putting pressure on gold prices. .
HOW WERE GRAMS OF GOLD BEEN AFFECTED BY THE HARD FALL IN ONS GOLD?
After the decision of the Banking Regulatory and Supervision Agency (BDDK) on commercial loans, the Turkish lira appreciated against exchange rates. With this development, gram gold started the week with a sharp decline.
The gram of gold, which fell to 949 lire on Monday and recorded its lowest level in a month, recovered in the rest of the week as the dollar rate hiked. Gram gold peaked on a weekly basis, reaching as high as 981 pounds on Thursday. With the effect of the sharp drop in gold per ounce on Friday, the gram of gold, which fell to 961 lire, recovered and closed the week at 976 lire. Looking at the price action on a weekly basis, the gold gram caused its investor to lose 1.60%.
Gold and money market specialist İslam Memiş, on the foreign exchange, said: “BIST 100 closed at 2490 points, with sellers, but in the stock market I continue my expectation of upside, my expectation of a new peak. I guess that withdrawals on the stock market could continue the uptrend with bullishness. Dollar TL is at 16.65. I will follow 16.56 – 16.76 during the day. A large band gap is back on the agenda. This week you need to pay attention to the large band gap , on a weekly basis, on a weekly basis. After each sharp pullback, we see gaps opening in the banks. Fluctuations mean the spread opening. Those who ignore the warnings to date are deceived by the exchange rates they see on the screen if they are about to replace their assets, they expect it to retire, but they do not take this spread into account. The euro side remains cheaper against the dollar. I can confidently say: Euro, ster lin is at a lower level. accessible by a dollar. I don’t buy gold or silver, I will buy foreign currency. Then you should know that the euro / dollar parity has regressed. So the euro lost value. The euro is cheaper than the pound. I don’t buy gold or silver, I will buy foreign currency. Then you should know that the euro / dollar parity has regressed. So the euro lost value, “he said.
BUY OPPORTUNITIES FOR GOLD
Evaluating the business in gold, Memiş also gave his advice on gold: “Gram gold TL is currently at the level of 973 lire. The price on the screen. As the scissors gap is open, these figures are 977 lire and 980. lire. You will see them in the 970-980 range. Anyone who says it should go down a little more should consider this. The best area on Monday, when there was a screen price of 950, bought it from 960. The range of 950 and 1000 lire you can buy. I said that when we sell at 1020 you can buy at 950, now you have to take a step, you have to finish the buying process. There will be a different development, I will intervene anyway “You can be sold again, I can say that the support levels can go down a lot. They can also happen. Under 950 it seems difficult, the current situation warns him. “He said.
HERE ARE THE GOLD PRICES LIVE …