Will there be a rise in gold and the dollar after Trump's election victory?

Expectations regarding the Federal Reserve's (Fed) interest rate cut have stirred the markets.

The statement released after the decision emphasized that inflation has made progress toward the 2 percent target but remains at high levels.

It was noted that while a softening has been observed in the labor market, economic activity continues to grow strongly.

Furthermore, it was stated that the Fed will continue its process of reducing its bond holdings.

GOLD PRICES AND THE DOLLAR INDEX

Trump's re-election following the polls caused a decline in gold prices. However, economist Hikmet Baydar, stating that this retreat is temporary, said he expects a recovery in gold prices due to the US's heavy debt burden.

Baydar said, "Gram gold could rise above 3,000 TL in the short term."

He stated that he expects a rise in gram gold parallel to the continued rebound in ounce gold.

DOLLAR/TL

Baydar noted that foreign investors continue to bring money into Turkey and that this situation limits the upward movement of the dollar/TL exchange rate. Stating, "As long as foreign investor purchases continue, the probability of the dollar rising against the TL is low," Baydar emphasized that the dollar/TL could see levels below 34.

He also added that the money coming in for carry trade purposes is over 100 billion dollars and that this prevents the depreciation of the TL.

WILL GOLD AND THE DOLLAR INCREASE?

Thinking that the rise in gram gold and ounce gold will continue in the coming period, Baydar stated, "While I do not expect a significant increase in the dollar/TL parity, global risks should be monitored."