Fastest Rise in Precious Metals in Seven Months
Spot gold and silver prices reached their fastest monthly increase in the last seven months in August, driven by weakening Federal Reserve expectations and economic developments.
Spot gold and silver prices recorded their fastest monthly increase in the last seven months in August as a result of weakening projections regarding interest rate hikes by the U.S. Central Bank and other economic developments.
Global Inflation Concerns
Oil prices, rising due to the war between the US, Israel, and Iran, are increasing global inflation concerns. This situation strengthens forecasts that central banks will adopt a hawkish stance.
Safe Haven and Pressure Process
During this process, the increase in demand for the dollar, seen as a safe haven, causes selling pressure in the commodity market, particularly on precious metals. Spot gold, which gained value in January and February, began to decline following the war in the Middle East.
Fluctuations in Precious Metals
Spot gold lost 11.3 percent in March, 1 percent in April, 1.8 percent in May, and 11.7 percent in June, while it gained 0.9 percent in July.
Rise in August
In August, the U.S. Treasury's increase in the size of its long-term bond buyback operations and slowing U.S. inflation and employment data came to the forefront. With the weakening of projections that the Fed would raise interest rates and the relative decrease in geopolitical risks, spot gold rose by 10 percent.
Spot Gold's Closing Figure
Closing August at 4,449 dollars, spot gold thus recorded its fastest monthly increase in the last 7 months.
Change in Silver Prices
A similar picture was seen in silver prices, with the ounce of silver increasing by 15.4 percent in August to reach 66.5 dollars.