New peaks in gold and the dollar

The rising risk of regional conflict has led the ounce price of gold to climb as high as 1,942 dollars. In the spot market, gram gold reached 1,746 liras.

During the first two days of the week, the view that the clashes between Israel and Hamas would not escalate into a wider regional war had begun to gain weight in the markets. Yesterday, however, the possibility of regional tension began to influence pricing again following the strike on a hospital in Gaza. The ounce price of gold, which had risen to 1,932 dollars last Friday, had seen levels below 1,920 dollars yesterday. Following the tragic events of last night, demand for gold, which is considered a 'safe haven,' has risen once again.

The ounce price of gold climbed to 1,942 dollars after the opening of Asian markets and subsequently stabilized around 1,938 dollars. Meanwhile, in the spot market, gram gold also reached a new peak of 1,746 liras.

Another historical peak in the low-volume market was seen in the dollar/TL pair. The dollar/TL rose to 28.22 liras in early morning trading. It then pulled back to 27.98. The euro began the day at 29.6630 liras.

In the free market, the dollar is being bought at 28.0030 liras and sold at 28.0050 liras. The selling price of the euro, which is bought at 29.6610 liras, was set at 29.6630 liras. Yesterday, the selling price of the dollar was 27.9180 liras, and the selling price of the euro was 29.5290 liras.

US data released yesterday played a role in the rise of the dollar. According to data announced by the US Department of Commerce, retail sales in the country increased by 0.7 percent in September compared to the previous month, reaching 704.9 billion dollars. Market expectations were for retail sales to increase by 0.3 percent on a monthly basis during this period. Analysts stated that the data indicates consumer spending remains strong despite high prices and borrowing costs.

In addition, the Fed also announced industrial production and capacity utilization data for September. Accordingly, industrial production in the US increased by 0.3 percent in September compared to the previous month. Market expectations were for industrial production to increase by 0.1 percent during this period. The capacity utilization rate in the country increased by 0.2 points in the same period to 79.7 percent. The capacity utilization rate, which exceeded market expectations, was projected to be 79.6 percent.

News Source: 12punto