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The decline in gold prices that began yesterday continued today.
The precious metal rose more than 1% last week on soft jobs data and supported by forecasts of U.S. interest rate cuts this year.
Gold prices fell 1.3% yesterday on profit-taking and sharp market volatility as investors awaited the next inflation data this week for clues on U.S. interest rate cuts this year.
The price of gold closed at $200,410 yesterday and fell 0.6% to $200,395 as of September 20th today.
In the same minute, gram gold was traded at 2,000 570 TL, quarter gold at 4,00203 TL, and republic gold at 16,007 761 TL.
The Fed is expected to
While Fed officials are doing their best to reassure the market, San Francisco Fed President Mary Daly also said they are open to cutting interest rates if necessary and that policy should be proactive.
While the statements supported market expectations that the Fed will cut interest rates by 50 basis points at its September meeting, futures contracts gave an 87% chance of a larger rate cut by the Fed in September.
Despite the fall in gold prices, geopolitical risks and the certainty of a rate cut by the Federal Reserve are likely to support gold ounces, analysts said.
What do analysts say?
“There may be some exits from gold ahead of some of the risk events, like Jerome Powell’s speech, the producer price index (PPI) and the consumer price index (CPI) released this week,” said Phillip Streible, chief market strategist at Blue Line Futures.
“Gold bulls have reason to worry that the Fed needs soft inflation data, not just weak jobs data, to cut rates,” said Tai Wong, an independent metals trader in New York.
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