Gold prices decline in global markets
As gold prices fell due to central banks' tight monetary policies and a strengthening dollar, gram gold started the day at 6,817 liras in the domestic market.
Gold prices declined on Wednesday due to expectations that central banks will maintain high interest rate policies and a strengthening dollar. While the spot price of gold per ounce dropped to 4,345.55 dollars, gram gold in Turkey started the day at 6,817 liras.
Global Markets and the Impact of the Dollar
Expectations that major central banks could keep interest rates high for a longer period to control persistent inflation caused a decline in gold prices.
While the spot price of gold per ounce fell by 0.2 percent to 4,345.55 dollars, US gold futures rose by 0.2 percent to 4,383.10 dollars. The dollar, hovering near two-month highs, put pressure on gold.
Experts' Geopolitical and Market Assessments
Kyle Rodda, Senior Financial Markets Analyst at Capital.com, stated that short-term volatility depends on oil prices and developments in the Middle East.
Rodda emphasized that the long-term structural dynamics supporting gold remain quite strong, drawing attention to current uncertainties in the market.
Central Banks and Inflation Messages
Boston Fed President Susan Collins noted the risks that inflation may remain above the 2 percent target in the future, stating that she supported the decision to raise interest rates.
The Fed raised its policy rate by 25 basis points last week to the 3.75-4.00 percent range. The Bank of Japan and the European Central Bank had also raised interest rates.
Year-End Forecasts from BMI Analysts
BMI analysts maintained their average gold price forecast for 2026 at 4,400 dollars per ounce.
It was projected that high geopolitical risks and central bank purchases could establish a strong price floor around the 3,800 dollar level.
Current Gold Prices in Turkey
While gram gold in Turkey started the day at the 6,817 lira level, other precious metals generally followed a downward trend.
Spot silver dropped 0.6 percent to 66.70 dollars, platinum fell 1 percent to 1,815.11 dollars, and palladium declined 0.5 percent to 1,301.60 dollars.