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Final Status in Gold Prices

by Ali Canbaz
Final Status in Gold Prices

Economic markets have been living very active days in recent days. Although it is an expected situation after the election, all market players are still in intense concentration to take the right position according to the market.

For the foreign exchange suppressed before the election, an upward increase was expected after the election. While this was advantageous especially in the summer season when foreign exchange inputs were most intense, it was also very important that the exporter could draw their costs to a competitive level.

But like the two sides of the coin, this situation is particularly uncomfortable with the end consumer situation, as this is reflected in many sectors as cost and hike.

As for gold; As you know, two elements are important in determining the TL-based price of gold. The first is the international dollar-based ounce price, and the second is the USD/TL parity.  In the last month, the price of gold ounce has been cruising between 1.896 USD and 1.965 USD, and today the price of ounce is 1.925 USD.

The fluctuation in the TL price of gold in the last month period is entirely due to the USD/TL exchange rate. The share of the ounce price in this fluctuation is very low.

During this period, the gold investor saw the gold as a safe port and there was an intense increase in the purchase requests.

However, it is necessary to clearly say that there is a reflex of fear or panic buying intensity. We saw in our observations that; When prices are going up to an upward momentum, requests for purchase are increasing. When prices become stationary, purchase requests are becoming normal.

We understand that with the fear of rising prices, our people invest under whatever they have.

Of course, these investments will find their worth and benefit the owner in the long run. Short-term gold prices should not worry the investor.

Gold always earns in the long run. At least that's been the case so far.

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