Gold takes flight again

Rising tensions in global markets, particularly with the criminal investigation involving the Federal Reserve (Fed) and its chair, Jerome Powell, have led to a significant rise in precious metals. Notable increases in gold and silver prices were observed at the beginning of the week.

In the morning hours, spot gold climbed to the $4,601 level, while instantaneous prices were hovering around $4,568.

Gram gold was also affected by these developments, refreshing its previous record and rising to 6,338 liras as of 07:59. The volatility in the dollar/TL exchange rate and the rise in spot gold were the main factors pushing gram gold prices to their peak.

In the Grand Bazaar, the gap between official figures and market prices widened. In Istanbul's Grand Bazaar, gram gold traded at 6,476 liras in the morning hours and briefly exceeded the 6,519 lira threshold.

INVESTIGATION INTO THE FED AND GEOPOLITICAL RISKS

Federal authorities in the US have launched a criminal investigation into the Fed's $2.5 billion renovation project for its headquarters in Washington. In a video released over the weekend, Fed Chair Jerome Powell described the investigation as a "pretext," arguing that it had reached this point due to "threats and ongoing pressures." Powell also stated that this process serves as a warning for both himself and future Fed chairs. It has been noted that the intense criticism directed at the Fed by President Donald Trump has weakened the institution's political independence.

Another significant impact on gold prices has been the developments in the Middle East. While more than 500 people have lost their lives in the ongoing protests in Iran, the Tehran administration announced that it could target American bases if the US threat of military intervention is realized. US sources, meanwhile, announced that President Trump would soon be briefed on measures that could be taken within the framework of the Iran protests. These statements indicate that the Washington administration is seriously considering new sanctions or military options against Tehran.

These developments in international markets have reduced risk appetite, driving investors back toward precious metals, which are seen as a safe haven.

Kelvin Wong, Senior Market Analyst at OANDA, stated, "The rise in geopolitical risks lies at the heart of the strong intraday gains in gold and silver. As uncertainty increases, demand for safe havens becomes more pronounced."

Charu Chanana, Chief Investment Strategist at Saxo Markets Singapore, summarized the current situation by saying, "Geopolitical risks, concerns about growth, and interest rate debates have created a new wave of uncertainty in the risk premium."

The statements contained in this news report do not constitute investment advice.