Selçuk Ergin (Selcoin), an analyst, warned investors to “be prepared for shocks under the gram” and commented on what will happen for gold at the beginning of June. Here are the details…
Analyst: “Get ready for shock for gram gold”
After the last price correction of the precious metal, as we reported on Cryptokoin.com Precious metal prices continued to gain momentum as they posted their second weekly gain. The dollar index fell for the second week in a row and the benchmark 10-year note dropped to a six-week low, both bolstering the strength of the yellow metal. However, the gains were limited by the aggressive stance of the US Fed in the minutes of the May 2022 meeting. Additionally, a respite in global equities has undermined bullion’s appeal. Therefore, it is important for a gold investor to be careful about the important triggers that may affect the gold price action in the short term.
Selcoin said that it is in watch mode under grams and it will be a serious blow to inflation. According to the analyst, we will see critical pricing on the closing day of the week. While it is expected that the FED will tighten in monetary terms in September, he emphasized that Turkey, like other countries, should enter into an interest rate hike route. Selcoin used the following statements:
So where is the safe haven? Number 1 of them is gram gold and the other gram silver. Safe harbor this week and in the coming period. This week, an important door is opening together in the closings. Another important threshold is being crossed. Investing in dollars in gold can also benefit from Currency Protected Deposits. But the most reasonable investment for me is physical gram gold. We have evolved into a process where we have to be ready for shock under the gram.
Which levels should be watched?
According to the analyst, he states that 1,000 liras can be seen while gram gold has climbed to 980 liras. “Bought levels of 910 are now 940 TL,” the analyst says, noting that in case of an intervention from the MB, only a few days of relaxation can be experienced. “We last processed the 900 levels for a long time. The investor is now leaning back. If there is a close at 1865 level under ounce, gram gold will throw itself over 1000 TL,” he said.
