Sharp drop in gold: Ounce price at two-month low

Gold prices continued their sharp decline on the second trading day of the week. As selling pressure increased in global markets, ounce gold tested its lowest levels since August 5, while losses in gram gold also became more pronounced.

Ounce gold fell to as low as 4,191 dollars during the day. Later, as levels of 4,134 dollars were observed for ounce gold on market screens, gram gold dropped to the 6,500 lira band. The decline in gram gold, which finished Friday at 6,745 lira with a 0.39 percent increase compared to the previous close, drew attention in the new week.

The rise in US bond yields stands out as the primary factor in the pressure on gold. The increase in the 10-year bond yield weakens demand for gold, which does not provide interest income. The rise in oil prices keeping inflation expectations alive also strengthens the expectation that the US Federal Reserve (Fed) may keep interest rates high for a longer period.

MARKET EYES ON US DATA

Data coming from the US this week will be closely monitored for the short-term direction of gold. ADP private sector employment and non-farm payroll figures could be decisive on interest rate expectations regarding the Fed.

It is stated that if strong economic data increases expectations that interest rates will remain high, the pressure on gold may continue. Conversely, a loosening of interest rate expectations and a pullback in bond yields could support precious metal prices.

On a day when the domestic data agenda is quiet, the Dallas Fed manufacturing index to be announced in the US is also among the topics followed by the markets.