Gold ounce falls below 5 thousand dollars

The absence of major market participants worldwide has led to gold trading continuing with weak volumes. On Tuesday, the price of an ounce of gold showed a decline of up to 1.4 percent, following a 1 percent loss in the previous trading session.

Following the announcement of moderate US inflation figures last week, which strengthened the possibility of an interest rate cut by the US Federal Reserve (Fed), there was a short-term rise in gold prices, as expectations of lower interest rates supported non-interest-bearing precious metals. However, although the ounce of gold broke a historic record by exceeding 5,595 dollars thanks to intense speculative buying at the end of January, prices had fallen to around 4,400 dollars due to sharp sell-offs at the beginning of the month. Following this sharp movement, gold has continued its volatile course despite recovering some of its losses.

Most major financial institutions are of the opinion that the upward trend in precious metals will continue in the medium term. In analyses by institutions such as BNP Paribas, Deutsche Bank, and Goldman Sachs, geopolitical risks, debates over central bank independence, and the tendency of investors to move away from currencies and government bonds are listed as the main reasons increasing interest in gold.

City Index analyst Fawad Razaqzada commented, "Gold remaining below 5,000 dollars may discourage investors with bullish expectations, and the volatility observed recently may put pressure on prices."

In the Singapore market, spot gold fell 0.5 percent to 4,967.82 dollars per ounce, while silver also experienced a 0.4 percent loss in value. While no significant change was seen in platinum prices, palladium fell by more than 1 percent. Meanwhile, the Bloomberg Dollar Spot Index remained flat today following a limited rise in the previous session.