Gold prices decline in global markets as experts issue warnings
As a result of sharp sell-offs in the markets, spot gold fell to $4,115 while gram gold closed at 6,480 liras. Experts evaluated the reasons for the decline.
Sharp sell-offs in global markets led to a significant drop in gold prices, with spot gold falling to 4,115 dollars and gram gold finishing the day at 6,480 liras.
Sharp Drop in Gold Prices
While gold prices in global markets started the new week with sharp sell-offs, spot gold lost 3.97 percent in the previous trading session and closed at 4,115 dollars.
Domestically, gram gold followed this decline in global markets, finishing the day with a 3.84 percent loss at 6,480 liras and starting the following day at 6,518 liras.
Factors Behind the Decline
The pullback in gold prices was driven by the rise in US bond yields, the strengthening of the dollar, and the downward breach of technical support levels.
The US 10-year Treasury yield reaching a new peak of 5.27 percent increased the pressure on gold, which yields no interest.
Critical US Data Awaited
The PCE inflation data to be released on Wednesday and the non-farm payroll figures to be published on Friday are at the center of market attention.
This data is expected to be decisive on expectations regarding the interest rate policy the Fed will pursue in the upcoming period.
Assessments by Saxo Bank Strategist
Saxo Bank Commodity Strategist Ole Hansen stated that the recent decline in gold was formed by rising bond yields, a strengthening dollar, and the breaking of technical levels.
Hansen also pointed out that investors turning to profit-taking ahead of China's holiday starting on October 1 could accelerate the sell-offs.