Gold starts the new week with a decline

Developments in international markets since last week continue to put pressure on gold prices. Both gram gold and ounce prices saw a decline on the first day of the week. Along with economic indicators, the course of geopolitical risks has also been a determining factor in price movements.

The weakening of expectations for an interest rate cut by the US Federal Reserve, combined with positive US labor market data, has increased downward pressure on the precious metal. The US non-farm payrolls data released yesterday showed an increase of 178 thousand people in March, marking the highest rise since December 2024. During the same period, the unemployment rate fell to 4.3 percent.

In light of these developments, the price of gram gold in the free market started the first day of the week with a 0.7 percent decline, trading at 6,646 TL. In spot markets, ounce gold fell to 4,646.69 dollars, a loss of 0.9 percent. US gold futures were trading 0.5 percent lower at 4,657.50 dollars. It was also noted that trading volumes in Asia and Europe were low due to the holiday.

On the other hand, the rise in US 10-year bond yields and the dollar index also limited demand for precious metals. Experts point out that the high-interest-rate environment reduces risk appetite for gold, which does not yield interest.

The rise in global oil prices also remains on the agenda. Growing concerns over energy supply due to the war between the US and Iran have pushed oil prices upward. US President Donald Trump stated that there would be a "harsh response" if Iran attempted to close the Strait of Hormuz. However, US intelligence does not expect Iran to take such a step at this stage.

The fact that rising oil prices increase pressure on inflation somewhat overshadows gold's traditional safe-haven status. Markets are closely monitoring potential developments and new signals regarding the Fed's monetary policy.

In addition to gold, declines were also observed in other precious metals. Spot silver fell 1.4 percent to trade at 71.98 dollars. The price of platinum dropped to 1,970.38 dollars with a 0.9 percent loss. Palladium followed a flat course at the 1,503.52 dollar level.

News Source: 12punto