Warning from İslam Memiş to gold, dollar, and silver investors: Until Wednesday...

Financial analyst İslam Memiş provided his weekly assessment in his column on tv100. Explaining which dates and data points should be monitored, Memiş gave tips on what kind of week might await investors in gold, silver, dollar, euro, and other investment instruments.

İslam Memiş stated that global markets are focused on Wednesday, emphasizing that the US Federal Reserve's (Fed) interest rate decision will shape the markets.

Here is İslam Memiş's analysis for this week on tv100:

"The general expectation of the markets is that the Fed will not make any changes to interest rates. My forecast is in the same direction. However, it would not be a surprise for the markets if the Fed starts interest rate cuts as of June. We will get the codes of the process from the statements of Fed Chair Jerome Powell."

"I EXPECT A DECLINE IN GOLD"

''The dollar index (DXY) may remain strong until the Fed's decision. I expect pullbacks in all assets against the dollar. For that reason, those who hold dollars should evaluate opportunities well until Wednesday. I expect a decline in the ounce prices of gold and silver.''

''There are support levels at 2,120 dollars for ounce gold and 24.70 dollars for ounce silver. Then I expect the rise to start again."

WARNING FROM MEMİŞ TO THOSE TRADING IN TL

"Borsa İstanbul completed the week at 8,828 points. There was a 0.62% loss in value. Fitch upgraded Turkey's credit rating. There was an expectation that there would be records in the stock market. I had said, follow 8,400-9,400, the corrections are not over. It rose to 9,358 on Monday, but it is currently at 8,828 points. The rises were not permanent. The story was not in the rating upgrade. So, the sales have not ended here. Especially those who trade in TL should be careful. I recommend them to make cost-basis calculations in dollars and gold."

‘’Investors need to be very careful on the stock market side. Do not engage in leveraged or credit-based trading. This market is not gambling; it is an investment market. If you cannot afford it, be smart, don't look for trouble. The stock market is not a market to enter with hearsay information."

50 LEVEL EXPECTED IN EURO/TL BAND

"The dollar is at 32.20 liras. Our expectation on this side continues in a positive direction. Foreign exchange rates are generally in an upward trend. We expect the 40-45 band for the dollar and the 50 level for the euro/TL rate. A confrontation and hardening have begun between the economic management and the market. Be aware that this has turned into finger-wagging. The economic management says, we will not allow foreign exchange rates to rise, we will intervene if necessary, the exporter might be upset. Statements are coming for those expecting a high exchange rate to act accordingly. The market thinks the opposite.''

''Today's trend points to the dollar rising to the 40-45 band. You announced 36% inflation for this year, but the market says 50% is hard to stay below. The economic management is getting even tougher and wagging its finger, saying we will take measures. They say, gossip as much as you want, you will not be able to keep us from our path. This may not lead to a good place. Let's see, may the end be good. We are used to being battered, but the market does not like this."

HE HAD WARNED BEFORE

Memiş said, "I had warnings that there would be a pullback in ounce gold, gram gold, gram silver, and ounce silver. We saw ounce gold retreat to 2,155. Gram gold was at 2,438 liras on the physical gold side. It retreated to 2,385. It refreshed its record again with a rapid rise on Friday, and gram gold saw 2,459 liras."

"It retreated sharply, and one day later, on Friday, it refreshed its record. Our expectation of 2,500, 2,700, and 3,000 liras continues for gram gold. Records every month will not be a surprise for us. The economic management announces that the dollar will not rise; time will show whether gram gold will remain limited in its rise along with it. They say it will see 3,000 liras this year, let's see."

"THE ERA OF GIFT GOLD IS OVER"

İslam Memiş drew attention to the workmanship costs in gold prices and then shared his future scenario regarding gold: "The Ministry banned the workmanship of 0.25 and 0.50 grams last year. Now there is no gold in the market due to workmanship. You cannot reach it. It exists, but it has workmanship. And not just a little. A day will come when you will have money and buy gold, but the variety will be very small. It will be high-cost. An era has closed in Turkey."

"Farewell to the era of gold at weddings. It is now closed. The era of gift gold is over. Of course, 3-5 pieces will be pinned on brides for show. It won't be 22-karat, but 14, or not 14-karat, but 8-karat. It will be pinned for show, but I would like to remind you again that we are the last generation to own physical gold. From now on, our grandchildren will only see gold in museums. They will see it, they won't be able to touch it."

News Source: 12punto