Decline in precious metals continues as markets await Fed decision
Following US inflation data, gold and silver maintain their three-week losing streak, while investors focus on the Fed's September 16 interest rate decision.
Following August inflation data from the US, the downward trend in gold and silver prices continued for a third consecutive week. Markets are closely locked on the Federal Reserve's September 16 interest rate decision and new economic projections.
Three-Week Losing Streak in Gold and Silver
Higher-than-expected inflation data in the US and the strengthening possibility of a rate hike have kept precious metals under pressure. Spot gold and spot silver both ended the last three weeks with losses.
Latest Status of Spot and Gram Gold
Spot gold decreased by 1.84% on a weekly basis to $4,348.72. Gram gold closed the week down 1.61% at 6,786.876 TL, maintaining its three-week losing streak.
Developments in Silver Prices
While a similar picture was seen in silver, spot silver fell 2.62% to $64.4812. Gram silver managed to stay above 100 TL despite a 2.37% loss.
September 16 Fed Meeting and Expectations
The most critical development of the new week will be the Fed meeting on September 15-16. The probability of a 25 basis point rate hike in futures markets has risen to 87%.
Critical Technical Levels for Gold
In the technical outlook, the $4,300 level stands out as a critical support zone. Analysts are monitoring the previous low around $4,282 and the 50-day moving average at $4,269.
Support Points in Gram Gold and Silver
While the 6,650-6,700 TL band is a critical support zone for gram gold, the $62 level is being watched as a critical threshold for silver, and falling below this level carries risks.