Experts evaluate buying opportunity after drop in gold prices
The future of gold prices, which declined amid market fluctuations, and the impacts of central bank policies were discussed by experts.
As gold prices recovered after dropping due to rising US bond yields and messages from Fed minutes, experts stated that these levels could be evaluated for long-term investments.
Fed policies and their impact on markets
It was noted that the Fed minutes revealed a hawkish outlook, and it was stated that bringing rate cuts to the agenda is difficult unless a persistent decline in inflation is observed.
Pointing out that the possibility of a rate hike remains on the table toward the end of the year, it was emphasized that the cautious stance in the markets continues.
Physical demand and central bank steps
It was recorded that gold faced renewed buying when it dropped below $4,100, and that strong physical demand supports prices.
China's continued efforts to increase its gold reserves and purchases by central banks help gold hold at higher levels.
Medium and long-term investment strategies
It was stated that it is normal for gold to remain under pressure in the short term in an environment where interest rates remain high and energy costs may create inflationary pressures.
It was expressed that current levels could present a gradual buying opportunity for medium and long-term investors.
Gold allocation recommendation in portfolios
It was voiced that investors willing to commit to a horizon of 6 months, 7 months, or 1 year could consider gold in their portfolios.
Views were shared that the share of gold in long-term portfolios could be increased up to 25 percent.