Fed Expectations in Gold Prices and Saxo Bank's Critical Level
As spot gold fell to $4,266 amid selling pressure, Saxo Bank stated that surpassing $4,440 is a prerequisite for the decline to slow down.
In global markets, spot gold retreated to as low as $4,266 due to selling pressure seen in the first half of September. As all eyes turn to the Fed's critical interest rate decision to be announced tomorrow, Saxo Bank announced the level to monitor for the downward trend to weaken.
Selling Pressure and Decline in Spot Gold
In global markets, spot gold continues its decline under the influence of selling pressure that has persisted since the first half of September.
Falling as low as $4,266 during the day, spot gold dropped below the $4,300 level pointed out by Saxo Bank as a critical threshold.
Critical $4,440 Threshold from Saxo Bank
Saxo Bank Head of Commodity Strategy Ole Hansen stated that for the current downward trend in gold to weaken, the price must rise back above the $4,440 level.
Analysts emphasize that it is also important for the price to sustain its position above $4,440 to confirm the recovery.
Reasons for the Retreat in Precious Metals
While three main developments stand out in the pullback in the precious metals market, Fed rate expectations, rising bond yields, and a strengthening dollar are putting pressure on gold.
These sales also spread to other precious metals such as silver, platinum, and palladium.
Fed's Interest Rate Decision and Domestic Markets
The Fed's interest rate decision will be announced on September 16 at 21:00 TSI (TRT), and a press conference by Fed Chair Kevin Warsh will be held at 21:30 TSI following the decision.
In the domestic market, gram gold continues to hold above the 6,700 TL level, supported by the volatility in the dollar/TL exchange rate.