Gold prices drop below 4 thousand dollars under pressure from oil and inflation

Gold prices declined on the final trading day of the week as rising oil prices heightened inflation concerns and strong economic data from the US reinforced expectations that the Fed might raise interest rates again. The ounce price of gold dropped below 4 thousand dollars, while gram gold is trading at 6 thousand 401 liras.

After starting the day with a decline, as of 09:25, gram gold traded at 6 thousand 401 liras with a 0.75 percent loss in value compared to its previous close, whereas yesterday it finished the day at 6 thousand 449 liras with a 1.06 percent drop compared to the previous close. At the same time, quarter gold is being sold at 10 thousand 546 liras, and Cumhuriyet gold is at 41 thousand 986 liras.

While macroeconomic data released in the US revealed that the country's economy grew by 3.4 percent in the third quarter of this year, the Fed's inflation indicator, the core personal consumption expenditures price index, increased by 0.3 percent monthly and 3.1 percent annually in September. Following these data, expectations that the Fed might raise interest rates in December strengthened, and the ounce price of gold fell to the 3 thousand 990 dollar level with a 0.8 percent drop as of 09:25.

While uncertainties regarding technology stocks and question marks over whether artificial intelligence investments will turn into profitability increased selling pressure in global markets, the markets are monitoring the CBRT Monetary Policy Committee meeting summary along with growth and inflation data from the Eurozone and Germany.