New target after record high for gram gold! Economist Hikmet Baydar sets a date
Milliyet.com.tr/ÖZEL With gold prices breaking all-time highs, investors are wondering why the market is soaring. The price of gram gold has broken records for seven consecutive trading days, while an ounce of gold has surpassed the critical threshold of $3,500. Today, a gram of gold is trading at 4,675 TL.
2 IMPORTANT DEVELOPMENTS WILL BE ON THE RADAR!
While there are many underlying parameters that are escalating tensions, there will be important developments for markets to monitor in September. Domestically, the Central Bank of the Republic of Turkey (CBRT) will announce its interest rate decision on September 11th. The US Federal Reserve (Fed) will set its policy rate on September 17th.
HERE IS THE MOST IMPORTANT REASON FOR THE STRONG RISE IN GOLD!
So, what's the reason for the rapid rise in gold? Will there be a downward correction after the sudden rise? When will we see 4,700 TL? Third Eye Consultancy Founder Hikmet Baydar, speaking to milliyet.com.tr about the topic, said: "The most important reasons for gold's rise are the flight from the dollar due to the Fed's interest rate cut and concerns about its independence, and the investor's shift to gold due to its status as a safe haven."
'MARKETS MAY EXPERIENCE FLUCTUATING'
Markets can experience volatility, particularly depending on changes in expectations for a Fed rate cut. Some fund managers may sell gold purchased in anticipation of an interest rate cut before the Fed's decision, closing their positions.
As technical data for gold ounces show signs of fatigue, interim profit-taking is possible. A decline to $3,435 is possible. Strong support for gold per gram is at 4,465 TL. If the price of gold per ounce declines due to profit-taking, it could also fall to the support level of 4,465 TL.
HOW DO CBRT AND FED INTEREST RATE DECISIONS AFFECT THE MARKET?
A Central Bank of the Republic of Turkey (CBRT) decision could lead to a limited rise in gold prices. A Fed decision could lead to attempts to push gold above $3,500 per ounce.
WHEN WILL 4,700 TL BE EXCEEDED?
We're likely to be above 4,700 Turkish Lira , especially as the Fed's interest rate cut date approaches. We believe the Central Bank of the Republic of Turkey (CBRT) rate cut could soften any potential decline in gold prices abroad and pave the way for a smaller decline in gold prices domestically.
WILL THERE BE A HARD FALL IN GOLD?
"We think there will most likely be a position change. Therefore, we believe there is a high probability of profit-taking. However, there may not be as much of a sell-off domestically as there is abroad."
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