Gold at its lowest level in 11 weeks

The tension and mutual attacks between the US and Iran in the Strait of Hormuz have increased activity in global markets. The rise in oil prices and the appreciation of the dollar have caused investors to move away from gold.

A sharp decline was observed in gold prices on Wednesday. Losing approximately 2 percent in value, gold tested its lowest level since March 23. The spot price of gold per ounce fell by 1.9 percent to 4,178 dollars.

DECLINE ALSO IN THE DOMESTIC MARKET

The decline in global markets was also reflected in domestic gold prices. According to Grand Bazaar data, gram gold traded at 6,260.98 TL, a decrease of 1.92 percent. Quarter gold lost 1.93 percent in value to 10,041.65 TL, while Republic gold fell by 1.92 percent to 41,605.46 TL.

DOLLAR AND INTEREST RATE EXPECTATIONS WERE EFFECTIVE

According to experts, the strengthening of the dollar on a global scale was effective in the decline of gold. The appreciation of the dollar made gold more costly for investors using other currencies.

On the other hand, the rise in oil prices strengthened expectations that inflationary pressures could rise again. While this brought with it the forecast that central banks could keep interest rates at high levels for a longer period, it also led to a decrease in demand for gold, which does not provide interest income.

News Source: 12punto