The peak in gold and silver continues: New forecast from an expert

The rapid rise in the gold market is on the radar of investors both in global stock markets and in Turkey. While the value of gram gold in the Grand Bazaar has exceeded the 8,000 TL threshold, quarter gold has climbed above 13,000 TL, and ounce gold has soared to the 5,600 dollar level. In this extraordinary volatility in the markets, the analyses of Assoc. Prof. Dr. Filiz Eryılmaz have served as a guide for investors.

Stating that global developments and geopolitical risks are affecting pricing, Eryılmaz pointed out that under these conditions, great confidence has been built in both gold and silver. Participating in a TV broadcast, Eryılmaz noted that they had not witnessed such a steep rise in gold and silver prices last year, adding, "When gold rises a little, people immediately start investing in gold."

Expressing that the Fed's interest rate policies and the weak course of the dollar are the main factors in this rise, Eryılmaz said, "The reason why gold and silver are rising together is due to fundamental factors such as the weakening of the dollar and the Fed cutting interest rates. But silver also has its own unique reason for rising. This is the scarcity of silver supply, which was also low last year. When prices rose in China, it imposed restrictions on exports. China wanted to kill two birds with one stone. First, it did not want to make production costly, and second, it was resource nationalism."

Furthermore, stating that the political atmosphere in the US and international relations also directly affect pricing, Eryılmaz recalled that there are expectations that Trump's policies in the US will not be peaceful, and assessed, "Didn't Trump want peace? No, that's not it. Trump is playing to the American voter. He is trying to tell his voters, 'Look, America is the greatest,' through geopolitical risks. There is also a weakening in the dollar."

FACTORS DRIVING GOLD AND SILVER PRICES

Mentioning the possibility of a new lockdown in the US, Eryılmaz stated that there could be further increases in prices in the coming period. Pointing out that prices are trending upwards in the market because silver investors are reluctant to sell their assets, Eryılmaz reported that the same picture is observed on the gold side.

"It is resting at most. We are not seeing a strong correction in either silver or gold. There is an irrational environment that has moved away from rationality. It would be much better to buy slowly at every level. If we are going to make short-term investments, it is useful to follow the prices closely," said Eryılmaz, advising investors to take cautious steps.

Sharing her expectations for the future, Eryılmaz said, "It is not very easy to say 'buy' at these levels. We are in a period where conventional wisdom is being overturned. I am at a point now, and since I am also the chief economist of an investment firm, there is a strong trend, so I am giving bold advice in quotation marks. As long as silver is above 116 dollars, it can be bought in stages; as long as gold is above 5,400 dollars, it can be bought in stages; and as long as gram gold is above 7,400 TL, it can be bought in stages without causing too much distress. I estimate that gram gold will close the year at the 9,000-9,500 TL level."