Gold prices start the new week at a peak
Expectations of interest rate cuts by the US Federal Reserve (Fed) and the rise in the dollar/TL exchange rate have caused gold prices to reach record levels.
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The ounce price of gold rose to 3,486 dollars as expectations strengthened that the Fed would cut interest rates in September. In Turkey, gram gold reached its historical peak, climbing to 4,610 liras with the rise in the dollar/TL exchange rate. In the Grand Bazaar, gram gold is trading at 4,620 liras.
In the US, dovish statements by San Francisco Fed President Mary Daly led markets to expect a 25 basis point interest rate cut this month, despite core PCE data coming in above expectations. City Index Senior Analyst Matt Simpson stated that Daly's remarks were influential in the rise of gold prices.
The US Court of Appeals declaring most of the tariffs implemented during the era of former President Donald Trump illegal also created pressure on the dollar, supporting gold prices. The US Personal Consumption Expenditures (PCE) price index data for July showed a monthly increase of 0.2 percent and an annual increase of 2.6 percent. These figures were in line with market expectations.
According to CME FedWatch data, investors assess the probability of the Fed making a 25 basis point interest rate cut this month at 87 percent. However, the non-farm payroll data to be released on Friday will be decisive in finalizing this cut.