“Clear Reason for Hard Fall Revealed in Latest News”
Gold and silver prices have experienced a sharp decline following better-than-expected US non-farm payroll data. This has left investors wondering which investment tool would be most sensible during this period. Can gram gold provide permanence over 1300 liras?
Dynamic Investment Securities Research Specialist, Ceyhun Yavaş, commented on the matter, stating that despite signals indicating that the interest rate hike cycle was over following the Fed’s interest rate decision, no discourse on interest rate cuts could be seen in the texts. The Fed has pointed to 2024 in terms of interest rate cuts, but the market has priced 80-100 basis points until the end of the year.
Although the Fed’s decision was initially optimistic, sharp price movements have continued due to uncertainties in the market. The increasing stress on banking and upcoming elections have also contributed to the rise in demand for gold. Technical levels under gram suggest that as long as 1250 support is maintained on a weekly basis, 1300 and 1570 resistances can be targeted.
With regards to the global dollar, exchange rates have remained stable through the ‘Currency Protected Deposit.’ However, reports suggest that the exchange rates are not of a fair value. It is believed that KKM protects the exchange rates from global effects, but the exchange rates may enter into pricing again under the monetary policy to be implemented after the elections.
Investing in the short term is subjective to the risk perception of investors. For those who do not want to take risks, dollar and dollar-based investment products, gold and gold-based investment products, or KKM can be considered. In the long run, eurobonds may be a good option while banking sector shares can come to the forefront for possible foreign investor interest. Considering the global trend, companies that invest in automotive and charging stations may also be an attractive investment option.
