Gold prices started the week with a decline in global markets
Gold prices started the new week with a decline, with spot gold falling to $4,354 and gram gold dropping to 6,833 liras.
Gold prices in global markets started the new week on a downward trend. Gram gold is trading at 6,833 liras, while spot gold dropped to $4,354. Fed expectations, oil prices, and a strong dollar are exerting pressure on gold.
Current Gold Prices in Markets
Gold prices in global markets started the new week with a decline. As of 09:25 on Monday, September 21, gram gold is trading down 0.47 percent at 6,833 liras. Quarter gold is being sold at 11,190 liras, and Republic gold is at 44,554 liras.
The ounce price of gold also lost 0.6 percent in value, falling to $4,354. Gram gold had completed Friday with an increase of 0.87 percent compared to the previous close, at 6,864 liras.
Pressure from the Fed and Oil Prices
Regional tensions in the Middle East and the war between Russia and Ukraine keep concerns regarding energy supply alive. The rise in oil prices affects inflation and economic growth expectations.
The increase in energy costs in the USA strengthens expectations that the Fed may keep interest rates high or resort to new rate hikes. This situation limits the appeal of gold, which does not provide interest yield.
China's Gold Demand and Central Banks
Despite downward pressures in the global gold market, geopolitical risks and gold purchases by central banks support prices. While high prices in China reduce jewelry demand, investment-oriented gold demand remains resilient.
It is stated that gold-backed funds traded in China added approximately 11 tons of gold in August, reaching total gold assets of 293 tons. The People's Bank of China also continues its gold purchases.
Decline in Jewelry Consumption
High gold prices in China, weakening consumer confidence, and slowing income growth negatively affect jewelry sales. According to sector evaluations, the decline in gold jewelry consumption in the country has reached 34 percent.
While consumers are turning to lower-grammage jewelry instead of heavier products, gold withdrawals from the Shanghai Gold Exchange decreased by 22 percent month-on-month in August, dropping to approximately 62 tons.
Technical Levels and Tracked Zones
In short-term pricing, the $4,200 level for ounce gold is among the zones monitored during downward movements. In upward movements, surpassing $4,400 is considered an important threshold.
While the $4,580 level is monitored during stronger rallies, high US bond yields remain among the factors limiting gold's rise.
Importance of Investment Levels
Changes in global gold prices, along with the dollar/TL exchange rate, affect the price of gram gold in Turkey. Investors who bought gold when gram gold was at 6,048.94 liras on January 2 saw their portfolios gain value, whereas portfolios of those who bought at the high level on January 29 declined.
This situation clearly demonstrates the importance of the entry level of investment, alongside the volatility in gold prices.