Sharp drop in gold prices: Spot price falls below 4,000 dollars

Geopolitical risks affecting global commodity markets, the rise in energy prices, and the expectation that the US Federal Reserve (Fed) will maintain high interest rates increased selling pressure on precious metals. With these developments, the spot price of gold lost 4 percent on a weekly basis, falling below 4,000 dollars for the first time since July.

Concerns that rising oil prices would increase inflationary pressure and lead monetary policy to remain tight weakened investor demand for gold. The increase in the opportunity cost of holding non-interest-bearing gold became one of the main factors accelerating the decline in prices.

The selling wave in precious metals also reflected on other commodities. The spot price of silver lost 5.3 percent, platinum 4.9 percent, and palladium 6.5 percent. Silver dropped to its lowest levels since November 2025 at 53 dollars, while palladium fell to its lowest levels since June 2025 at 1,039.55 dollars.

In Germany, falling prices caused activity in the market. While the gram price of gold in the country dropped from 121 euros to 115 euros over the past month, it was observed that there was a high density at Turkish jewelers and long queues formed.