Gold prices maintain global resilience despite US interest rate hikes
Gold prices are showing resilience despite rising interest rates and a strengthening dollar in the US. Spot gold is holding above $4,300, while gram gold is trading at 6,830 liras.
Despite rising interest rates and a strengthening US dollar, gold prices continue to hold their ground in global markets. While spot gold manages to stay above $4,300, gram gold is finding buyers at the 6,830 lira level in Turkey.
Resilience in global markets
While rising US interest rates, a strengthening dollar, and increasing bond yields should normally put pressure on gold prices, spot gold closed last week with an increase. Although some selling was observed in the early trades of the new week, gold managed to stay above $4,300.
The 6,800 lira threshold for gram gold
Gram gold, which is critical for investors in Turkey, is trading at around the 6,830 lira level in the morning hours. The main reason prices do not fall below 6,800 liras despite the downward tendency is that the value of gram gold does not depend solely on the international spot price.
Hidden support from the exchange rate
Even if spot gold declines, the high exchange rate between the US dollar and the Turkish lira limits domestic drops. Experts point out that high exchange rate levels provide hidden support to gram gold against weaknesses in spot gold.
Major investors do not give up on gold
According to World Gold Council assessments, money continued to flow into gold funds in different parts of the world even during a period when interest rates rose and bonds offered high yields. In August, there was an $18 billion influx into global gold funds.
Record in physical gold assets
The amount of physical gold held by funds increased by 121 tons in a single month to reach 4,189 tons, breaking a historical record. While the net increase in fund assets reached 160 tons in the first eight months of the year, it was observed that major investors preferred to protect their assets.
Investor returns in Turkey
Based on the level where gram gold was approximately 5,986 liras at the beginning of the year, it is seen that investors have protected their gains at today's levels of 6,830 liras. Excluding the bid-ask spread, returns are preserved despite fluctuations throughout the year.