Horizontal course in gold prices: Experts announce critical band
As investors monitor tensions in the Middle East and central banks' potential interest rate steps, gold prices made a flat-negative start to the week.
As global market investors evaluate developments in the Middle East and the war's impact on inflation and interest rates, gold prices started the week flat-negative. While the spot price of gold per ounce hovers around 4,361 dollars, gram gold started the day at 6,834 liras.
Market Focus Points
Developments in the Middle East continue to be decisive in the search for direction in gold prices. U.S. President Donald Trump stated that if an agreement is not reached with Iran, the country would fail economically or its administration could be eliminated, while the Iranian army warned that it would retaliate against any new attack.
Short-Term Band Forecast
KCM Trade Chief Market Analyst Tim Waterer stated that a meaningful increase in gold prices requires a drop in oil prices and bond yields. According to the analyst, gold may trade in a range of approximately 4,200 to 4,580 dollars in the short term.
Global Interest Rate Cycle
The increase in energy prices and inflationary pressures due to the Iran war brought the possibility of a new interest rate hike cycle to the agenda in the global economy. Some of the world's leading central banks are signaling that further tightening may be needed to bring inflation under control by raising interest rates.
Current Status in Other Precious Metals
Despite the flat course in gold, increases were observed in other precious metals. Spot silver per ounce increased by 0.8 percent to 66.76 dollars, platinum rose by 0.2 percent to 1,804.33 dollars, and palladium reached 1,311.65 dollars with a 0.7 percent increase.