Sharp pullback in gold continues

Recent data released regarding the US economy and expectations for the US Federal Reserve's (Fed) monetary policy have negatively impacted gold prices in global markets. With the strong economic outlook maintained and the possibility of an interest rate hike coming to the fore again, ounce gold has retreated to its lowest levels in approximately eight months, while gram gold has also experienced a loss in value.

US DATA PUT PRESSURE ON GOLD

The JOLTS Job Openings Report, which is closely followed by the markets, revealed that job postings in the US have reached their highest level in the last two years. Following the data supporting the strong employment outlook, analysts also expect a strong increase in the non-farm payrolls data for June.

Furthermore, the fact that the latest core inflation data released continues to remain significantly above the Fed's 2 percent inflation target has been among the factors affecting expectations regarding interest rate policy.

EXPECTATION OF INTEREST RATE HIKE GAINS STRENGTH

Following the economic data, expectations in the markets that the Fed could raise interest rates at least once more this year have strengthened. According to pricing, the possibility of the first interest rate hike occurring in September stands out. Rising bond yields have also been one of the factors increasing selling pressure on gold, which does not provide interest income.

EYES ON US-IRAN TALKS

Investors are also closely following statements to come from the ongoing US-Iran peace talks in Qatar. While expectations for a permanent ceasefire agreement continue in the markets, it is stated that the parties are not expected to hold direct talks.

OUNCE GOLD FELL BELOW 4 THOUSAND DOLLARS

Ounce gold started the day at the 4 thousand 11 dollar level. During the day, the lowest level of 3 thousand 970 dollars and the highest level of 4 thousand 18 dollars were seen. During the hours when transactions continued, ounce gold found buyers at the 3 thousand 976 dollar level.

DECLINE ALSO EXPERIENCED IN GRAM GOLD

Domestically, gram gold started the day at 6 thousand 11 liras. During the day, the lowest level of 5 thousand 957 liras and the highest level of 6 thousand 28 liras were recorded. Gram gold was traded at 5 thousand 967 liras in the latest transactions.

News Source: 12punto