Gold prices fall amid Fed Chair Warsh's hawkish messages and West Asia tension
Precious metals declined amid geopolitical risks and interest rate hike expectations in the markets.
Following statements by US Federal Reserve Chair Kevin Warsh and military developments in West Asia, gold prices started the week with a sharp drop, hitting a two-week low.
Latest Status in Gold Prices
According to current market data, gram gold is trading at 6,864 TL, quarter gold at 11,193 TL, and Republic gold at 44,595 TL.
Spot gold declined to $4,418.04 per ounce, while US gold futures dropped 1.4% to the $4,466.80 level.
Fed's Interest Rate Policy and Hawkish Messages
Fed Chair Kevin Warsh signaled that new interest rate hikes might remain on the agenda in the fight against inflation.
According to CME FedWatch data, markets are pricing in a 60% probability of the Fed raising interest rates in September.
Military Tension in West Asia
US President Donald Trump announced that Iran's strategic energy hub, Kharg Island, was targeted.
Following this military development, global oil prices recorded an increase of over 2%.
Losses in Other Precious Metals
The decline wave in gold also negatively affected other precious metals, broadening the selling pressure.
Spot silver fell 0.4% to $66.30, while platinum and palladium also lost value.