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Expectations regarding the Federal Reserve's (Fed) interest rate cut have stirred the markets.
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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.
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Furthermore, it was stated that the Fed will continue its process of reducing its bond holdings.
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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.
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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.
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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.
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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.
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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."
News Source : 12punto
