Latest Status in Gold and Oil Prices

After the speech given by FED Chairman Jerome Powell yesterday, there were active days in the markets.

Latest status in gold and oil prices. Speaking at the House of Representatives yesterday, US Federal Reserve Chairman Jerome Powell stated that with the start of normalization, inflation may increase with the effect of intense demand, however it will not become uncontrollable. Speaking at the Senate today, Powell is expected to reiterate his forecasts for inflation. In addition, his explanations regarding the increase in cases and possible closures in the coronavirus epidemic will be closely followed. In the coronavirus epidemic, which is on the rise again in the world, Germany extended the restrictions until April 18, but stated that the restriction combined with Central Easter was a wrong decision. It is expected that the restriction on the Easter holiday will be lifted, but the general restriction will continue. The increase in the number of cases in Europe has also gained momentum in countries with high populations such as the USA, India and Africa. While the said increase in cases created a third wave concern around the world, there was a sharp withdrawal in oil due to these increases. After declining more than 4 percent yesterday, Brent oil started to be priced at a 3 percent premium today. Brent oil, which dropped to $60 yesterday and tested its lowest level since February 9, reached $63 today and entered a recovery trend. Gold, on the other hand, has received support from the latest developments, but it cannot recover its losses yet. The ounce price of gold could not hold at $1,755 last week. From now on, it is expected that the pressure below $1,766 will continue on the ounce prices, which have lost momentum towards the $1,720 level. The price of gram gold, which started to rise with the movement of the dollar exchange rate, reached the level of 447 TL today. In the gram price of gold, 445 TL is the level that supports purchases towards the resistance of 466 TL in the short term, while under this support, 425 TL is followed as the closest level. The dismissal of Naci Ağbal, the head of the Central Bank of the Republic of Turkey, and the uncertainty over how the monetary policy will proceed afterwards caused a sharp loss to TL assets this week. Even if the volatility decreases compared to the beginning of the week, the prices have not been balanced yet due to the uncertainty.