Gold Prices Reach Historic Highs: Gram Gold at ₺2,891
Gold prices continue to capture the attention of investors globally as geopolitical tensions in the Middle East and recent Federal Reserve interest rate cuts drive a surge in demand for safe-haven assets. As of September 23, 2024, gram gold hit an all-time high of ₺2,891, while quarter gold climbed to ₺4,740.
This significant rise in gold prices reflects the broader market’s concerns, particularly around geopolitical risks and global economic uncertainty.
Key Drivers Behind the Gold Price Surge
Several factors have contributed to the sharp increase in gold prices:
- Geopolitical Tensions: Ongoing conflicts and rising risks in the Middle East have heightened demand for gold, a traditional safe-haven asset during uncertain times.
- Fed Interest Rate Cuts: The U.S. Federal Reserve’s recent 50 basis point interest rate reduction continues to fuel demand for gold, as lower interest rates make non-yielding assets like gold more attractive.
Gold Prices in the Global Market
In the global markets, ounce gold surged to a historic peak of $2,634, reflecting the worldwide trend of investors seeking security in precious metals. The performance of ounce gold has had a direct impact on domestic prices, pushing both gram and quarter gold to new heights.
Economic Data and Future Outlook
Recent economic indicators from the U.S. show mixed signals. The PMI data suggests a slight slowdown in business activity, particularly in the manufacturing sector, where the decline is deepening. The composite PMI dropped from 54.6 to 54.4 in September, underscoring weaker industrial performance.
- Minneapolis Fed President Neel Kashkari has called for a further 50 basis point interest rate cut by the end of the year, which could sustain or even boost gold prices further.
- All eyes are now on the upcoming Personal Consumption Expenditures (PCE) data, expected to be released on Friday. This key inflation measure, closely monitored by the Federal Reserve, is forecast to show a monthly increase of 0.2%, bringing annual inflation to 2.7%.
What to Watch for This Week
Several important events will be crucial for gold prices in the near term:
- Fed Speakers: Investors will closely watch remarks from at least nine Federal Reserve officials this week, including Fed Chair Jerome Powell and New York Fed President John Williams.
- PCE Data: As the Fed’s preferred inflation gauge, the PCE report could influence further interest rate decisions, potentially affecting gold prices.
Technical Analysis: Key Support and Resistance Levels
For those tracking gold prices closely, here are the key support and resistance levels:
- Support: $2,600 (ounce gold) / ₺2,850 (gram gold)
- Resistance: $2,650 (ounce gold) / ₺2,900 (gram gold)
As geopolitical risks and Fed policy continue to evolve, these levels will guide investors looking for opportunities in the gold market.
Gold’s Appeal as a Safe-Haven Asset Grows
With gold prices reaching historic levels, the precious metal continues to serve as a reliable hedge against economic and geopolitical uncertainties. Investors should stay informed of upcoming economic reports and Fed announcements, as these factors will heavily influence the trajectory of gold in the near future.
Whether it’s concerns over Middle Eastern tensions or the next moves by the Federal Reserve, gold remains a strong safe-haven for investors navigating volatile market conditions.
Source: NTV / Prepared by Irem Yildiz