Gold prices climb to a two-week high amid Middle East tensions and potential Fed rate cuts, with quarter and gram gold rates reflecting the surge.
As global markets react to rising tensions in the Middle East and hints of a more accommodative monetary policy from the U.S. Federal Reserve, gold prices have surged to their highest levels in two weeks. On August 1, 2024, the price of an ounce of gold increased by 0.25%, reaching $2,453. This upward momentum has also influenced the local market, with gram gold trading at ₺2,611 and quarter gold exchanging hands at ₺4,267.
The Fed’s recent decision to hold interest rates steady, while leaving the door open for a potential rate cut in September, has bolstered both the bond and commodity markets. Fed Chair Jerome Powell indicated that the central bank seriously considered a rate cut during its latest meeting, further fueling global risk appetite.
In the UK, the Bank of England (BoE) also made a notable move, reducing its policy rate from 5.25% to 5%—marking its first rate cut since March 2020. BoE Governor Andrew Bailey emphasized a cautious approach in future decisions.
Source: NTV / Prepared by Irem Yildiz
