Last Minute: While the price of gold remains the focus of investors, inquiries have started, notably the latest data from the Grand Bazaar and gram buy and sell prices. Gram prices, which fell below 1000 lira last week, started the Activity below dollar/TL and ounce to rise. However, while the stronger dollar pushed down gold prices this morning, gold’s price per gram approached the 990 TL mark. So, what are the gold prices on Wednesday September 7th? Here are the details…
Price pressures in the US economy, last seen at 8.5 percent in July, suggest inflation has now peaked and a downward cycle has begun. However, the US Federal Reserve is determined to continue raising interest rates in line with its 2% inflation target until rate hikes show a meaningful downward move.
INTEREST REDUCTION UNCERTAINTY
The decisions to be taken by the Fed, which directs global monetary policy, at its September meeting remain uncertain. While expectations for the bank’s meeting this month vary with the mixed signals from the announced data and mounting geopolitical risks, the probability of the Fed’s 75 basis point rate hike on September 20-21 is currently priced at 58 percent in-the-money markets .
There is a higher probability that the bank will hike rates by 50 basis points at the November 1-2 and December 13-14 meetings. Although it remains uncertain up to the last moment whether the bank’s expectations will be met; In his 3 meetings he will raise the key interest rate by 175 basis points to 400-425 by the end of the year.
FED STATEMENTS ARE PRESSED GOLD
Investors also study gold prices for activity in the market. Rischmond Fed Chair Barkin issued a statement, while analysts said any comment referring to a 75 basis point hike in gold prices would keep gold prices under pressure. Barkin stated that monetary policy should be tightened further to keep real interest rates above zero. The dollar index appreciated as a result of the speech.
INDEX REACHES HIGH, BRINGING AN ANNUAL RECORD FOR THE DOLLAR
With these developments, the US Dollar Index renewed its 20-year high at 110.65 today. Domestically, as the Central Bank of the Republic of Turkey (CBRT) continued to cut interest rates, the dollar, which settled above 18, came a step closer to the December 20 high of 18.36. Dollar/TL hit 18.2676 today, hitting a new high of the year.
GRAM OF GOLD WITHDRAWN UP TO 990 LIRA LIMIT
Gold ounce pullbacks continue. The $1695 mark has been tested for the past few weeks. The ounce of gold, which rose to $1737 yesterday, fell to $1702 this morning as the dollar index strengthened.
In an attempt to maintain the psychological level of 1000 lira with the sub-ounce withdrawal, Grammgold today reversed yesterday’s bullish move. Gram gold fell below 1000 lire again today. Analysts commented that “as long as it holds above TL1,000, pullbacks may be limited” for gram gold prices.
Having seen 991 lira in gram gold during the day, it currently meets with the buyer at 995 lira.
WILL THE PRICE OF GOLD FALL OR RISE?
Commenting on gold prices, Craig Erlam, senior market analyst at OANDA, said: “Expectations for future Fed rate hikes have moderated slightly. But the jobs report needs to be paired with good inflation data to have any meaningful impact. At the moment it is possible to see some support for gold above $1,700. However, the downward pressure is likely to continue as the dollar is so favored and central banks are not easing the brakes. Therefore, a break below $1,680 seems highly likely.”
Gold market expert İslam Memiş also shared his predictions on the price of gold. Memiş notes that September is very important for the markets. Because amid rising fears of inflation and recession in Europe, the ECB will announce its interest rate decision. In addition, the interest rate decision of the Fed, which is of crucial importance for the markets. Considering this environment, İslam Memiş makes the following statement:
“We will see both lows and highs in September. I will follow the range below from $1700 to $1728. Investors dealing with gold need to know about this bandgap.”
First numbers of the day in the USD/TL rate
Officers and pensioners beware!
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