Gold slumped Tuesday morning as the rise in the US dollar and bond yields weighed on bullion’s appeal and investors awaited more clues on the Federal Reserve’s path to a rate hike. Meanwhile, many experts reported what can be expected for gold. One of them was Islam Memiş, Gold and Money Markets Specialist. Here are the expert’s comments…
How does the Fed affect the markets?
According to Gold and Money Markets Specialist Islam Memiş, gram gold is supported by the dollar. The expert, who does not think that gram gold will sag below 950 liras, thinks that although it appears that way on the screen, this is not actually the case. The expert points out that low prices are unlikely to remain in the medium and short term. In this respect, Memiş draws attention to the developments in the US Federal Reserve (FED). The expert uses the following statements, drawing attention to the FED’s rate hike:
The interest rate hikes in the Fed’s monetary policy continue. We have the FED, which continues to increase interest rates aggressively to reduce inflation. It will probably make another 75 basis point rate hike at the July meeting. Of course, we also saw sharp decreases in other foreign currencies against the dollar, precious metals such as gold and silver. There was a decrease of 100 dollars on ounce.
Islam Memiş stated that technically he continues to follow the $1680-1780 range. According to the expert, it is necessary to see the FED for the rises to continue. We need to see the Fed’s statements and interest rate decisions. Memiş adds, “For investors who have dollars, who actually have dollars in their hands, I see very low probability of staying in these low figures in the medium and long term, in the face of very low pricing for gold.” According to the expert, although the FED increases interest rates, many issues such as the energy crisis, the food crisis, the increase in geopolitical risks, bring the pricing of the global recession risk to the agenda. According to Islam Memiş, there is a serious inflation concern in global markets, there is a serious economic crisis, but commodity prices continue to be suppressed.
Islam Memiş: Gold will be 1.450 liras
He thinks it is possible to see 1,450 liras under a gram by the end of the year. According to the expert, sagging below 950 pounds is unlikely to be seen. He states that he can hardly see a gram of gold below the 950 lira level due to the scissors gap at the moment. Aiming for 1,200 liras in September and October, the analyst said, cryptocoin.com As we have also reported, it points to 1,450 liras by the end of the year. Because it is thought that upward movements in both foreign currency and ounce may occur in the last quarter of the year.
