Gold prices rise with geopolitical tension and weak employment data
Following a weakening dollar and US employment data, spot gold reached the $4,443 level, while gram gold domestically approached the 7,000 TL threshold.
Supported by easing geopolitical tensions, weak US employment data, and central banks' physical gold purchases, spot gold gained upward momentum to rise to $4,443, while gram gold domestically pushed toward the 7,000 TL threshold.
Global Developments and Spot Gold
Following easing geopolitical tension, a weakening dollar, and weak employment data from the US, spot gold recorded an increase of over one percent, surpassing the $4,436 level and rising as high as $4,443.63.
Gram Gold Movement Domestically
Following these upward movements in global markets, domestic gram gold prices also rose rapidly, trading in the range of 6,806.18 TL to 6,903.06 TL and approaching the 7,000 TL level.
Employment Data and Fed Expectations
In the US, ADP private sector employment increased by 38,000 in August, falling below expectations, while the probability that the Fed might go for a rate hike at its meeting this month declined from 70 percent to 62 percent.
Geopolitical Factors and Oil Prices
Following US President Donald Trump's statements regarding Iran, geopolitical tension in global markets partially eased, increases in oil prices and bond yields slowed down, and the barrel price of Brent crude dropped to $94.4.
Central Bank Purchases
Another factor influencing the markets was signals regarding the continuation of physical gold purchases by central banks. Futures and commodities markets expert Zafer Ergezen drew attention to reports that the People's Bank of China purchased 19 tons of gold last month.