Central banks continue buying, gold prices soar...

Gold prices began Thursday, August 1, the fourth business day of the week, with an upward horizontal trend. Following the US Federal Reserve's decision to keep interest rates steady, the market is being closely monitored by those following the agenda.

The US Federal Reserve (Fed) kept its policy rate unchanged in line with expectations, maintaining it at the 5.25-5.50 percent range, the highest level in 23 years. Following the Fed's decision, gram gold moved above 2,600 liras.

Fed Chair Jerome Powell's statement that central bank officials "seriously considered" cutting interest rates at this meeting provided support for gold prices.

AT A TWO-WEEK HIGH

Markets are pricing in an interest rate cut in September.

Gold prices rose to a two-week high after Fed Chair Powell left the door open for a rate cut in September.

The spot price of gold per ounce is trading at 2,446 dollars this morning. Gram gold was also trading at 2,608 TL in the morning hours. Similarly, quarter gold rose to 4,265 TL. Republic gold was trading at 17,000 TL.

'GEOPOLITICAL RISKS ARE THE REASON FOR CONTINUED PURCHASES'

Economist Hikmet Baydar, speaking to Sputnik, explained the following:

Central banks continue to buy gold. The reason for the continued purchases is geopolitical risks. If geopolitical risks increase, we may see new records in gold. If geopolitical risks rise, the recovery in gold may continue. Accordingly, upward movements in gram gold may occur.

Since there was no surprise in the interest rate decision, this will not affect the dollar. The real problem is in Europe. Germany's growth is negative. Recession is being discussed for Europe. This situation causes the dollar to remain stronger. Meanwhile, US debt is spiraling out of control. This puts pressure on the dollar.

'WE MAY SEE A RISE IN OIL'

Finally, with the killing of a Hamas official, the risk of the war spreading to the region is increasing. This is what Israel wants. If such a situation occurs, we may see a rise in oil. This would mean that inflation in the US will rise even further. Currently, the biggest risk for the US is geopolitical risk. Regarding the assassination in Iran, the US said, 'we have no knowledge.' The further spread of the war is not in the US's interest."