Details of the Sharp Decline in Global Markets and Gold Prices
Spot gold dropped to $4,115 globally, while gram gold fell to 6,480 TL. The decline was driven by rising US Treasury yields and a strengthening dollar.
In global markets, the price of spot gold sharply dropped to $4,115, while gram gold closed at the level of 6,480 TL. Markets await new data.
Loss in Value for Spot and Gram Gold
While the price of spot gold in global markets started the new week with a sharp decline, it lost 3.97 percent in yesterday's trading to close at $4,115. The price of gram gold traded in the spot market also declined by 3.84 percent yesterday, closing at 6,480 liras.
Factors Triggering the Decline
The decline in gold prices was driven by rising US Treasury yields, a strengthening dollar, and the downward breaching of critical technical levels. The increase in the US 10-year Treasury yield to a new peak of 5.27 percent heightened the pressure.
Critical Data Awaited
Markets have turned their attention to critical data coming from the US this week. The PCE inflation data to be released on Wednesday and the non-farm payroll figures to be published on Friday will be monitored for the Fed's rate path.
Expert Evaluations and the China Factor
Saxo Bank Commodity Strategist Ole Hansen stated that the weakness in gold reflects rising bond yields, a stronger dollar, and technical selling pressure, noting that the situation could be amplified by profit-taking from Chinese investors.