New Equation in Gold Prices: Fed, China and Oil Impact
While the ounce price of gold stabilizes below $4,400 in the markets, central bank purchases and geopolitical risks continue to support prices.
As gold entered the new week with a trajectory below $4,400, the Fed's interest rate hike policy and oil prices create downside risks, while China's reserve purchases support the market.
Gold's Starting Level for the Week
In the first trades of the new week, the ounce price of gold continues to trade, stabilizing around 4,375 to 4,380 dollars.
The Fed's Interest Rate Hike Decision
On September 16, the US Federal Reserve raised its policy interest rate by 25 basis points to the range of 3.75 to 4.00 percent.
Developments in the Chinese Market
While the decline in jewelry consumption in the Chinese market reached 34 percent, the People's Bank of China continues to expand its reserves.
The Status of Gram Gold in Turkey
In Turkey, gram gold is hovering within the band of approximately 6,850 to 6,870 TL on the morning of September 21.