A historic day in the markets: Ounce and gram gold hit record highs

The depreciation of the dollar in global markets and increasing geopolitical uncertainties have accelerated the search for safe havens among investors. While expectations regarding the Federal Reserve's (Fed) monetary policy steps continue, gold prices have reached new record levels in both international and domestic markets.

OUNCE GOLD RENEWS ITS PEAK

Ounce gold rose 1.1 percent on Wednesday to 5,243.58 dollars. Testing 5,247.21 dollars during the day, prices reached an all-time high. While the increase in ounce gold since the beginning of the year has exceeded 20 percent, US gold futures also traded at 5,237.70 dollars with a 3.1 percent premium.

HISTORIC LEVEL IN GRAM GOLD

The global rise was also reflected in the domestic market. Gram gold increased by 1.11 percent to 7,305 liras. Seeing 7,324 liras during the day, gram gold recorded its new record.

DOLLAR CONTINUES ITS WEAK TREND

The US dollar moved near its lowest levels in approximately four years, with selling pressure drawing attention. US President Donald Trump's statements regarding the value of the dollar strengthened the “weak dollar” expectation in the markets. Analysts state that this outlook on the dollar front supports gold prices.

FED EXPECTATIONS AND TRUMP’S MESSAGES

OANDA Senior Market Analyst Kelvin Wong stated that the rise in gold is fueled by its strong inverse relationship with the dollar. Wong emphasized that Trump's statements pushed prices higher during the US session. Trump expressed that he would announce his new Fed chair nominee shortly and that he anticipates a decline in interest rates with the new administration. Markets, meanwhile, expect the Fed to keep interest rates steady at its January meeting.

6 THOUSAND DOLLAR FORECAST

Deutsche Bank predicted that gold could reach 6,000 dollars per ounce in 2026 due to persistent investment demand and central banks turning toward assets alternative to the dollar. In the short term, it was noted that the technical resistance level is around 5,240 dollars.

RISE IN OTHER METALS AS WELL

Spot silver rose 1.9 percent to 115.11 dollars. Silver, which hit a record of 117.69 dollars at the beginning of the week, has gained approximately 60 percent in value since the beginning of the year. Platinum rose 2 percent to 2,692.60 dollars, and palladium reached 1,961.68 dollars with a 1.4 percent increase.

CONSUMER CONFIDENCE DECLINED

In the US, consumer confidence fell to its lowest level in 11.5 years in January, under the influence of a weakening labor market and high prices. This picture further strengthened the tendency of investors to turn to safe havens.

News Source: 12punto