Gram gold prices continue to fall sharply
The price of a gram of gold was at 2,423 liras as of 10.10, up 0.6% on the first day. At the same time, Quarter Gold was selling for 4.15 liras and Republic Gold for 15,995 liras.
The price of gold is currently at $2,338 an ounce, up 0.4%.
Global markets observed heightened risk perception following the postponement of expectations of the first interest rate cut by the US Federal Reserve to the final quarter of the year, following economic indicators released in the United States pointing to an upswing in economic activity.
While U.S. macroeconomic indicators continue to send strong signals, the Fed said it wants to see more evidence that inflation is subsiding and endorsed guidance from Fed officials not to rush into cutting interest rates.
Data released yesterday showed the number of people filing for unemployment benefits for the first time nationwide fell to 215,000 in the week ending May 18, lower than expected.
Analysts said the flow of positive data on economic vitality increases the likelihood the Fed will keep interest rates high for an extended period, and the decline in applications for unemployment benefits suggests the labor market remains strong even as U.S. hiring slows.
Given these developments, analysts said money markets were now pricing in a 48% chance that the Fed would make its first rate cut in September, and a 65% chance that the Fed would start cutting rates in November and December, compared with an 85% chance in December.
Analysts said today’s domestic data is muted, while overseas data on U.S. durable goods orders and the University of Michigan Consumer Sentiment Index will follow, and from a technical perspective, they expect the $2,400 and $2,430 levels to be supported by gold at the $2,320 and $2,430 per ounce levels, they said.
