New forecast for gold

The employment data released in the US last week was closely followed by financial circles. While employment growth in July was announced at 73 thousand, this figure remained below expectations. In June, this number had been recorded at 147 thousand. Expectations were for employment to increase by 110 thousand.

Following this data, investors turned to gold, which is seen as a safe haven, and an increase in gold prices was observed. US-based Citibank re-evaluated its gold price forecasts in light of these developments. The bank raised its 3-month spot gold price forecast from 3300 dollars to 3500 dollars. It also increased its price range expectation from the 3100-3500 dollar band to the 3300-3600 dollar level.

The weakening in economic growth and the inflation outlook in the US caused Citibank to make an upward revision in its gold forecasts. While gold per ounce was trading in the 3285-3335 dollar range on Friday, it started the new week at the 3356 dollar level. The rise in the dollar/TL exchange rate and the volatility in gold per ounce also affected gram gold prices. Gram gold, which found buyers at 4405 lira last week, rose to 4405 lira and is trading at the 4385 lira level this morning.

News Source: 12punto