Call for calmness for gold investors

Following the signing of a new trade agreement between the US and the European Union, gold prices retreated to $3,340 per ounce. Commenting on this development, which weakened the perception of a safe haven, Ahmet Cumhur Kitiş said, "Such political moves affect current pricing, not the structural strength of gold." Kitiş stated that such periods offer a window of opportunity for long-term investors. On the geopolitical front, the renewed diplomatic activity between Russia and Ukraine and a potential ceasefire have temporarily overshadowed the risk of war. While these developments are reported to be suppressing gold's geopolitical risk premium, according to DEMAŞ A.Ş. sources, the long-term trend toward gold remains unchanged even in this environment.

"Gold is currently resting. This is not an end, but a sign of a new beginning."

Gold prices have weakened not only in international markets but also in Türkiye. Last week, the price of a gram of gold, which traded at 4,355 TL, fell to 4,335 TL, giving investors a sense of anticipation. Despite the decline in activity in the Grand Bazaar, DEMAŞ Inc. maintained production capacity. Company officials consider this a temporary hesitation among investors. Kitiş said, "This short-term relief in global markets shouldn't deter investors. Gold is an investment instrument that historically recovers more strongly after each pullback. The impact of the US-EU trade agreement and the relative easing of geopolitical tensions are temporary. The real determinants are global indebtedness, the energy crisis, and central banks' reserve policies. These factors make gold's long-term rise inevitable. At DEMAŞ Inc., our view on gold has not changed. We see these price levels as an opportunity for long-term investors. Let's not forget: gold is not just a metal; it is a source of trust, a tradition, and a strategy."

General decline in precious metals

Not only gold, but also precious metals like silver, platinum, and palladium experienced declines this week. According to Kitiş, even amidst this general decline, gold stands out due to its liquidity and historical value. According to DEMAŞ A.Ş. data, sales of 22-karat bracelets and quarter-gold coins have slowed in the domestic market. However, interest in gram gold remains. Physical gold demand is reportedly decreasing due to the summer season.

UAV

Reporter: News Center