Sharp drop in spot market gold prices and expert warnings
While the drop in ounce gold by nearly 5% and gram gold falling below 6,500 dollars worried investors, experts emphasized the need to think long-term.
The decline of the spot market ounce gold price to 4,146 dollars with a loss of nearly 5% and gram gold falling below 6,500 dollars caused activity in the markets. Experts and Grand Bazaar jewelers warned against short-term panic and emphasized that gold is a long-term investment tool.
Details of the Sharp Decline in Markets
The drop of the spot market ounce gold price to the 4,146 dollar level during the day yesterday with a loss of nearly 5% caused concern among those evaluating their savings in gold.
Along with this movement, the gram gold price domestically also tested below 6,500 dollars and followed a parallel course at this level.
Global Factors Triggering the Decline
Among the reasons for the drop in gold prices are global uncertainties, cash needs stemming from the war environment, and disruptions in the Strait of Hormuz.
Additionally, increased orientation toward the dollar and US bond yields, soaring oil prices, and interest rate hike expectations keep demand for gold low.
Do Not Panic Warning from Industry Representatives
Hüseyin Sarıtaş, one of the Grand Bazaar jewelers, stated that investors should not panic, emphasizing that gold is always a long-term investment tool.
Experts stated that rapid movements in the markets have increased due to the war environment and global uncertainties, and that investors should think long-term in precious metals.
Gold Targets of Investment Banks
Global investment banks' gold forecasts for the final quarter of the year average around the 4,400 dollar level.
Morgan Stanley announced a target of 4,450 dollars, Standard Chartered and Goldman Sachs 4,650 dollars, Citi 4,800 dollars for 0-3 months, and Deutsche Bank 5,000 dollars for 12 months.