Strengthening of the US dollar in global markets and FED expectations pressure gold prices
While the strengthening of the dollar and the FED's additional tightening steps affect gold prices, spot gold finds buyers at $4,189 and gram gold at 6,653 liras.
The strengthening of the dollar in global markets, US bond yields, statements by FED officials, and geopolitical developments are exerting pressure on gold prices. Spot gold is trading at $4,189, while gram gold stands at the 6,653 lira level.
Global Markets and the Course of the Dollar
In global markets, the dollar gained strength due to uncertainties in the euro zone. The dollar index reached the 102.5 level, approaching an 18-month peak and making gold more expensive in international markets.
Statements by FED Officials
Cleveland FED President Beth Hammack stated that inflation could remain persistent in the 2.5-3 percent range. These evaluations increased expectations that the FED might consider additional tightening rather than a rate cut.
Geopolitical Developments and Oil
The intensification of clashes between the Houthis and Saudi Arabia heightened concerns regarding energy supply. Oil prices surpassing $107 were also among the factors pressuring gold prices.
Critical Inflation Data
Regarding the short-term direction of gold, this week's US inflation data carries critical importance. September CPI will be announced on Wednesday, and PPI on Thursday.
Current Gold Prices
Gram gold is trading at 6.653 liras, 0.6 percent above the previous close. Quarter gold finds buyers at 10,911 liras, and Republic gold at 43,445 liras.