Gold vs. Dollars: Latest Update on Which is the Better Investment
Gold prices took a dip from their record high last Friday, sparking questions about whether new records will be set amidst the current geopolitical risks. Economist Tuğba Ekin shed some light on the situation, stating that the global market selling wave, influenced by US labor force figures and Japanese stock market trends, was largely impacted by geopolitical tensions over the weekend and the strengthening Japanese yen against the dollar.
Despite lower than expected inflation figures, the market did not respond positively to the 3.23% increase in July. The ongoing liquidity problem created by high interest rates in monetary policies has forced companies to downsize, but experts believe this is a temporary issue. Positive medium and long-term financial market expectations persist, with hopes for decreasing interest rates abroad, low inflation, boosting exports, and stabilized interest rates.
As investors navigate through this uncertain terrain, gold continues to be a safe haven amidst the profit realizations triggering the recent decline. Investors are advised to control their risk appetite, use stop-loss features when trading with leverage, and calculate swap costs accurately. Expectations for gram gold remain optimistic, with projections ranging between 2,650-2,700 liras in the medium to long term, offering potential buying opportunities below 2,550 liras.
In this unpredictable environment, it is crucial for investors to remain cautious, adapt to market fluctuations, and make informed decisions to maintain balance in their portfolios.
