Gold Soars to New Heights: Will It Keep Climbing? Bold Prediction! – Latest Update
Gold prices have started to rise once again as market volatility has increased following the release of US inflation figures. Economist Tuğba Ekin provided insights on the current situation in an interview with milliyet.com.tr.
Ekin emphasized that the US inflation data coming in below expectations has strengthened the possibility of the US Federal Reserve (Fed) cutting interest rates in September. This has led to a weakening of the exchange rate risk and an acceleration of purchases in the banking index, bringing the BIST 100 index close to the 11,000 level. The increase in TCMB reserves during the day has also contributed to positive pricing in Borsa Istanbul.
Although some limited profit realizations were seen after surpassing the 11,000 level, the stock market could potentially target 11,350 points after reaching 11,100 in the short term. The historical peak is at 11,088.
With the US CPI data falling below expectations, the dollar index has decreased, resulting in an increase in the price of gold ounces. As the possibility of a Fed rate cut in September becomes stronger, the trend in the price of gold ounces is expected to continue to rise. Expectations of gold reaching $2,800 and above by the end of the year may gain momentum.
In terms of gram gold, a short-term target range of 2600-2650 TL is possible. Investors who make physical purchases at these levels may see a profit of 3,000 TL and above in the medium to long term. However, it is important to consider factors such as buying and selling spread and tax implications to ensure a real profit.
When it comes to the dollar, Dollar/TL may fluctuate between below 32 TL and up to 35 TL depending on various factors including the dollar index, domestic agenda, and news flows in the coming days. Foreign institutions’ year-end expectations for Dollar/TL are still above 35 TL, with some positioning it to reach 42 TL. Ekin’s personal opinion is around 38 TL for the year-end exchange rate.
