Weak dollar and falling bond yields push gold prices higher
The weakening of the dollar and the drop in bond yields push ounce and gram gold prices higher, while messages from Fed officials increase market volatility.
While global economic developments and monetary policies affect the markets, the drop in bond yields and the weakening of the dollar drove gold prices upward. Ounce gold rose to 4,207.53 dollars, while gram gold also registered an increase.
Rise in Gold Prices
The drop in bond yields and the weakening of the dollar drove gold prices upward. While ounce gold rose to 4,207.53 dollars during the day, domestic gram gold climbed up to 6,656 TL with a 1.68 percent increase.
Volatility in gold prices is expected to continue for a while due to hawkish messages coming from US Federal Reserve officials.
Hawkish Messages from Fed Officials
Fed Governor Christopher Waller indicated that additional interest rate hikes might be necessary, while St. Louis Fed President Alberto Musalem stated that monetary policy needs to be tightened to bring inflation back to target.
Oil Market and Energy Concerns
Developments between the US and Iran and the situation in the Strait of Hormuz increased concerns regarding energy supply, while the barrel price of December Brent crude pulled back to 102.8 dollars.
TurkStat September Data
According to Turkish Statistical Institute data, the highest real return in September was seen in Government Domestic Debt Securities, while bullion gold and the BIST 100 index caused losses for investors.