Anticipated Rise in Gold and Stock Markets Sparks Optimism Among Investors
The BIST 100 index on Borsa Istanbul has been experiencing instability below 10,000 points, with a downward trend since July 23. The rise in gold prices has been notable in recent weeks, with expectations of a Fed interest rate cut in September driving strong buying activity.
Gold prices in the country are testing above 2750 liras per gram, while the pricing above 34 in Dollar/TL has also been drawing attention. The question arises whether there will be a decrease in the dollar and how the stock market will be impacted during a period of interest rate cuts. Additionally, what is the year-end expectation for gram gold?
Economist Hikmet Baydar provided insights into the current market situation, highlighting the recent ‘Black Monday’ event and the fluctuations in the stock market. He mentioned the possibility of the stock market reaching the 10415 point level in the coming days, with key support and resistance levels to watch out for.
With expectations of a Fed interest rate cut in September, there is optimism for global stock markets and potential increases in gold, stock markets, and bonds. The Central Bank is proceeding cautiously, waiting for monthly inflation to reach 2 percent before considering an interest rate cut, possibly starting in November.
Interest rate cuts may lead to upward movements in the stock market, with short-term targets at 10304 and 10415 points. The medium-term target could be 11240, contingent on factors like rating increases. Gold prices are also expected to see upward movements, possibly reaching 3,000 TL per gram by the end of the year.
As for the Dollar/TL exchange rate, pricing above 34 continues, with the possibility of decreases in intraday closings. The trend is uncertain due to inconsistencies in medium-term indicators, but a decrease in the market could be experienced if foreign investors transition from foreign exchange to TL. Overall, market dynamics are influenced by a complex interplay of factors, shaping the direction of various financial instruments in the near future.
