Causes of Sharp Declines in Global Markets and Borsa Istanbul

Sharp declines were recorded in precious metals, notably gold and silver, as well as in Borsa Istanbul. Experts pointed to the rise in U.S. bond yields and the strengthening of the dollar globally as the main reasons for the decline, while stating that a fund crisis was impactful in local markets.

Sharp Pullback in Precious Metals

The selling pressure in global markets spread over a wide area. Gold prices experienced a decline of over 3 percent, while the loss in value in silver exceeded 5 percent.

Impact of U.S. Bond Yields and the Dollar

Gold and Money Markets Expert Mehmet Ali Yıldırım Türk stated that the rise in U.S. bond yields strengthened the dollar and that this created pressure on gold prices.

It was noted that margin call sales coming within the framework of month-end contract transactions also accelerated the decline in precious metals.

Global Financial Conditions and the Fed

The rise of the U.S. 10-year bond yield above 5 percent is at the center of market focus. Coface Economist Seltem İyigün emphasized that high interest rates have tightened financial conditions.

It was stated that if the possibility of the Fed raising interest rates remains on the agenda, short-term downside risks in gold and silver prices may continue.

Borsa Istanbul and the Fund Crisis

While the selling pressure continued in Borsa Istanbul, the fund crisis in Turkey stood out among the prominent headings in market pricing.

In the audience survey conducted, 68 percent of participants expressed the view that the market was pricing in the fund crisis the most.

Market Expectations and Survey Results

In the survey preferences of market participants, geopolitical risks ranked second with 16 percent after the fund crisis.

The steps taken by central banks received 11 percent of the votes, while macroeconomic data were seen as having a 5 percent impact on market pricing.