Gold Prepares to Close the Week with a Decline

Gold is preparing to close this week with 5 percent depreciation with the strengthening US dollar.

Gold prepares to close the week with a decline. The precious metal is moving towards closing this week with a depreciation of about 5 percent, with the dollar getting stronger with the Fed's hawkish stance. This is cited as the worst weekly performance in the last 15 months. Gram gold, on the other hand, despite the decline in global gold prices, has limited its losses to 500 TL, supported by the USD/TL exchange rate which increased by 4 percent. Speaking at the press conference held on Wednesday, Fed Chairman Jerome Powell said that discussions on the asset purchase program used to support financial markets and the economy could begin. This statement of Powell put pressure on gold prices. The 10-year U.S. Treasury yield fell to 1.51 percent after climbing as much as 1.59 percent on Thursday. The Bloomberg Dollar Spot Index is flat after jumping from 1.124 to 1.140. Oanda Senior Market Analyst Edward Moya stated that gold prices are currently in a decline, but long-term opportunities can attract buyers, and said, "Long-term positions in gold started to approach the level of $ 1,750, but some may have set their target on the level of $ 1,675."

Ounce Gold

Starting 2021 at $1,900 per ounce, gold experienced one of the worst first-quarter performances in the last 40 years and dropped to $1,683 in March. Ounce gold has been trading at $1,785, declining by more than 6 percent since the beginning of June, after ending April and May with a price increase and rising to $1,900.

Gram Gold

With the rise in global gold prices and USD/TL exchange rate, gram of gold, which reached an all-time peak of 534 TL in the first days of June, reached the 500 TL limit, despite the decline in global gold prices, supported by the USD/TL rate which increased by almost 4 percent since the beginning of the week.