Weekly and Monthly Gold Forecasts from 3 Experts: Expect These!

Gold slid some after minutes from the Federal Reserve meeting showed the central bank would continue to raise interest rates by half a point at its June and July meetings. The Central Bank of the Republic of Turkey (CBRT), on the other hand, kept the policy rate constant. We have prepared the experts’ market comments and forecasts for gold prices for our readers.

“Market will shift focus to inflation data after FOMC minutes”

Kriptokoin.com FOMC minutes, Federal Reserve’s 3 It showed that all participants at the May 4 policy meeting supported a half-point rate hike to combat inflation, which threatens to rise further without central bank action. Gold trimmed losses after the minutes, but was forced to decline against a stronger dollar. Standard Chartered analyst Suki Cooper comments:

While the Fed minutes are generally in line with market expectations, the Fed indicated that 50 basis points increases would be appropriate at its June and July meetings. Market focus will likely remain on inflation data and signs that cost pressures are easing.

While gold is often seen as a hedge against inflation, interest rate hikes tend to increase bond yields, eroding its appeal and raising the opportunity cost of holding zero-yield bullion. Meanwhile, European Central Bank President Christine Lagarde has won key allies in her plan to move rates out of negative territory this summer.

Tunç Şatıroğlu’s prediction of the CBRT’s interest rate decision turned out to be correct

Economist and technical analyst Tunç Şatıroğlu, who interprets the markets, states that the Dollar/TL rate, which is an important component of gram gold prices, is correct. He states that only high interest rates can work to suppress it. According to Şatıroğlu, who stated that the exchange rate can only be suppressed for a while by selling foreign currency, the Dollar/TL rate will increase even more.

Stating that he did not expect a change in the Central Bank’s interest rate decision, Şatıroğlu’s prediction turned out to be correct and the CBRT kept the policy rate unchanged. The economist makes the following assessment:

What will happen if you lower the dollar today, it will rise again tomorrow. A dollar does not become 17 lira in a day, but in 10 days in a week. The trend is in that direction. The dollar does not increase here because the interest rate increases after the Fed decision. Here the dollar is already rising. We are already in a very bad situation. Also, what will come from there will not have much effect

Tunç Şatıroğlu, in his post today, being sure of his previous forecast, implied that the CBRT’s interest rate decision was already clear.

“The rise in ounce has not started, gram gold will move upwards ”

Tunç Şatıroğlu says that the other leg of gram gold, ounce gold, has not yet started to rise. However, in line with the expectation of an increase in the Dollar/TL exchange rate, he notes that the rise in grams will continue. The economist warns those who are in debt with gold and dollars or are considering borrowing:

If there is a dollar and gold debt, they should buy and close immediately. Those who are considering buying gold for investment should also consider buying long-term. According to me, gold has not entered an uptrend yet, there may be some pullbacks.

Hatice Kolçak: Gram gold price may be 1,200 TL at the end of the year

Economist Hatice Kolçak, who evaluated the latest developments in the markets, said that the gram gold price will increase by the year. He estimates that it will eventually reach 1,200 TL. Commenting on the Dollar/TL exchange rate, which is an important leg of gram gold, the economist says, “a decrease is possible, but not as severely,” as to whether there will be a sudden decrease in Dollar/TL similar to 20 December.

Hatice Kolçak, referring to geopolitical developments and tensions, emphasizes that one should be very careful when trading. According to the economist, gram gold is very close to the target and it could be 1,200 TL this year. Hatice Kolçak, stating that the dollar/TL gives an upward signal, predicts that gram gold will reach 1,000 TL in the summer months. The economist says that even more than TL 1,200 is possible for the end of the year and makes the following explanation for the Dollar/TL leg:

There is an uneasiness in the dollar. There are question marks whether a similar situation will occur in December. It was from the 18.50’s to the 10’s. Even the rhetoric of the inflation-indexed bond was enough. It pushed the dollar down a bit. It is not known if anything surprises will come out. If it goes out, we may see a decrease in the dollar. But it will not fall as hard as in December.

Hatice Kolçak, in her post after the CBRT decision, stated that the Central Bank was not surprised.