Gold ounce price falls below $4,150

The ounce price of gold fell below $4,150 on the morning of October 20, trading around $4,135. While US bond yields and a stronger dollar put pressure on gold, markets are awaiting the Fed's interest rate decision and personal consumption expenditures data.

Despite the decline in oil prices, the ounce price of gold fell to around $4,135 during early Asian trading on Tuesday, October 20. In the US, the 10-year Treasury yield rose to 5.14 percent, and the two-year Treasury yield rose to 4.78 percent. This increase in interest rates reduced the appeal of gold, which does not provide regular returns, and movement in the bond market outweighed safe-haven demand. While cheaper oil could alleviate inflation concerns, high bond yields and a stronger dollar increased pressure on gold. The appreciation of the dollar raised the cost of purchasing gold for investors using other currencies.

The Fed is expected to keep its policy interest rate steady in the 3.75-4.00 percent range at its October 27-28 meeting, with recent pricing showing this probability at 82.8 percent. The decision will be announced on October 28 at 21:00 Turkish time. Subsequently, on October 29, the US September personal consumption expenditures data will be released. While the first psychological threshold for ounce gold is monitored at $4,100, $4,050 stands out as technical support if selling pressure deepens. In upward movements, the $4,180 and $4,240 levels are being tracked. In Turkey, the direction of gram gold is determined by both the ounce price and the USD/TRY exchange rate.