Gold extended its losses on Monday as the rising dollar put pressure on bullion demand. The US market holiday is expected to lead to weaker trading on the day. An ounce of gold fell to around $1,836. Meanwhile, gram gold also fell from 1,030 lira to 1,024 lira. So what’s next? Here are the comments of Gold and Money Markets Specialist Islam Memiş…
Where are gold prices headed?
In which direction the gold prices will go next, most investors are wondering. This is one of the most curious questions about gold. Popular name Islam Memiş, who came to the fore with his statements on the subject, shared his latest comments. Memiş states that the US Federal Reserve (FED) did not cause a sharp movement in the markets. cryptocoin.comAs we have also reported, the FED increased interest rates by 75 basis points in a single meeting for the first time since 1994.
Memiş said that the reason behind the FED’s action not affecting the gold market is that the expectations had already affected the market about 3 days ago. Memiş explained that his personal view is that the rise in commodity assets will continue. He even thinks that peaks can be seen. He says that inflation will decrease in the upcoming period, but this should not mislead people. In other words, he thinks that although inflation may decrease on a seasonal basis, it will increase in the long run. For this reason, he says that people should hurry to make their purchases such as houses and cars.
Markets eased
Islam Memiş pointed out that the dollar index saw 105 levels after the FED’s interest rate decision. He then said that there was no serious change in the dollar index, which experienced a pullback. Islam Memiş stated that the reason for this is that the markets are priced about 3 days in advance. “When the market increased by 75 basis points in line with the expectations, there was no great activity. Markets have relaxed,” he said.
The latest situation in the precious metals market
The dollar index has hovered near its highest level in nearly two decades, making the dollar-priced bullion less attractive to overseas buyers. federal government departments, the Fed System, and the stock and bond markets in the United States; It will be closed on Monday due to the June holiday. Asian stocks failed to sustain a rare rally as Wall Street futures lost early gains amid fears that the Federal Reserve will underscore its commitment to tackling inflation this week, regardless of rate hikes.
Gold ended the previous week lower as the stronger dollar and major central banks’ interest rate hikes dampened the appeal of non-interest-bearing bullion. However, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 1.1 percent to 1,075.54 tons on Friday, from 1,063.94 tons on Thursday.
