Sharp Drop in Gold Prices: Latest Status on Ounce and Gram Gold

Gold, which had a strong August, caught investors' attention by starting September with sharp selling. While ounce gold fell to the $4,300 level, gram altın dropped below 6,700 TL, driven by a strengthening dollar fueled by Federal Reserve expectations.

Sharp Drop in September

Following its strong performance in August, gold prices started September with rapid selling. Ounce gold, which saw a three-month peak last week, completely erased its weekly gains, first dropping below $4,500 and then retreating to the $4,300 level. Gram gold also fell below 6,700 TL with these developments.

Inflation and Federal Reserve Expectations

Although the increase in oil and agricultural products raised concerns that global inflation might accelerate again, gold failed to generate safe-haven demand. Expectations strengthened in the markets that if inflation remains high, the Federal Reserve might keep interest rates high for a longer period or raise them again.

Geopolitical Tensions and Support Levels

Even though mutual attacks between the US and Iran resumed after a hiatus of about a month, gold lost value in this environment. On the other hand, technically, the downward breakthrough of support levels around $4,500 and $4,350 accelerated the downward movement in gold.

Expert Opinions and Future Forecasts

Saxo Bank Head of Commodity Strategy Ole Hansen stated that high real interest rates are negative for gold in the short term, but concerns regarding debt and the monetary system will be supportive in the long term. RBC Capital Markets projected that gold will trade in the $4,500 to $5,000 range for the remainder of the year.