Spot gold declines in global markets: Gram gold at 6,400 TL level

With spot gold falling below $4,000 in global markets, gram gold started the day at the 6,405 TL level in the domestic market. This downward trend in prices brought along warnings from analysts regarding technical indicators and support levels.

In global markets, the ounce price of gold dropped below $4,000 for the first time since July 29, falling as low as $3,986. This decline in spot gold was driven by oil prices approaching $115, concerns over high inflation and high interest rates, and the acceleration of cash conversion transactions following losses in technology stocks. Spot gold, which lost 6.57 percent in value in September, recorded a 3.69 percent decline in October as well.

In the domestic market, the gram price of gold dropped to as low as 6,369 TL during the day before trading around the 6,420 TL levels. While the weekly decline in gram gold reached 3.35 percent, it was stated that if this outlook continues, the sharpest weekly loss since the week of June 1 could be experienced. Analysts pointed to 6,330 TL as the next support level for prices falling below the 6,470 TL-6,430 TL support band.

Assessment: Analysts emphasized that gram gold remains behind its medium and long-term averages, with the 200-day average at 6,765 TL and the 50-day average at 6,740 TL levels. It was stated that gold, which is in a technically weak zone, being able to rise above 6,430 TL again depends on the recovery on the ounce side. It was also noted that oil and Fed pressure limit the rise.