Gold prices in global markets and the impact of Fed policies
While the Fed's interest rate policies and strong US data create pressure on gold prices, experts share their assessments regarding the market trend for the upcoming period.
The policies of the US Federal Reserve and strong US economic data continue to influence the course of precious metals. As spot gold prices decline, markets are focused on the steps the Fed will take.
Current Levels in Spot and Gram Gold
Spot gold fell 0.1% to $4,281.98 per ounce, while US gold futures for December delivery traded at $4,317.50.
In current domestic markets in Turkey, gram gold is finding buyers at 6,729 TL and quarter gold at 11,006 TL.
Fed Policies and Interest Rate Expectations
Behind the pullback in gold is the expectation that the Fed may keep interest rates at high levels for a longer period.
It is being evaluated that the Fed, which raised its policy rate to the 3.75-4.00% range last week, could implement another interest rate hike at its meeting at the end of October.
Economic Data and Market Pressure
Data released in the US on Wednesday showed that business activity reached its highest level in over five years in September.
The fact that strong demand increases pressure on supply chains strengthens expectations that the Fed will maintain its tight policy in the fight against inflation.
Experts' Expectations for the Future Period
Intesa Sanpaolo economist Daniela Corsini stated that they do not expect a definitive direction in their base scenario for precious metals and that prices could hover around $4,200 per ounce for several quarters.
Energy Markets and Other Metals
Oil prices declined after Iran announced it was open to diplomacy, raising expectations that inflationary pressures might ease.
Among other precious metals, silver and palladium declined, while platinum rose to $1,754.05 per ounce.