Gold breaks record in 3 months

SAFAKNA TURKEY – A sudden announcement was made about the price of gold. The attention of market participants is still riveted to economic data from the US. On Tuesday, after US Federal Reserve Chairman Jerome Powell’s messages to the markets, gold prices experienced sharp losses.

MESSAGE FROM THE Fed BEFORE INTEREST IS UP

Fed Chairman Powell warned that interest rates may need to be higher than expected. Powell said they felt it was very important to stick to the 2 percent target.

In addition, in another speech on Wednesday, Powell said the March meeting had not yet decided on the extent of an almost certain rate hike.

FED PRESSURE ON GOLD PRICES

After the hawkish rhetoric of Fed Chairman Powell on Tuesdays and Wednesdays, gold prices suffered big losses. Having started the week at $1854, an ounce of gold fell to $1809 on Wednesday. A gram of gold that opened at 1,124 liras on Monday tested 1,100 liras on Wednesday.

Nonfarm payrolls, which stood at 517,000 the previous month, have been revised up to 504,000.

The unemployment rate increased to 3.6 percent. Unemployment in January was 3.4 percent.

While US nonfarm payrolls outperformed expectations, rising unemployment heightened expectations that the Fed could raise interest rates more slowly. The markets recently talked about raising interest rates by 50 basis points instead of 25 basis points at the meeting in March.

The latest labor statistics increase the likelihood of a rate hike by 25 basis points. Although this situation led to a weakening of the dollar on a global scale, it caused a sharp increase in the price of gold.

AMAZING PREDICTION FOR GRAM GOLD FROM THE EXPERT

So, will the price of gold continue to rise, what are the important technical levels for gold in grams and ounces? Lecturer at Uludag University, Assoc. Dr. Filiz Erilmaz stated this on the air of CNN Turk. Erylmaz used the following statements:

“The Fed has an interest rate decision on March 22. Powell said that whether we increase it by 25 basis points or by 50 basis points is up to the data to decide. The number of non-farm payrolls was announced on Friday. There has been a recovery in prices, which will require the Fed to raise interest rates less if the data is good. With a support price of around 1,100 lire, grams of gold are now worth 1,138 lira. Because we saw 1872 under an ounce.

1140 Lira LEVEL VERY CRITICAL

The market says that the incoming data does not require the aggressiveness of the Fed, the demand for a safe harbor will come to the fore. Below we saw a strong exit. Even if it is not perceived as a rally, pricing above 1870 is positive, if it is above 1140 grams, the new target will be the 1180-1200 area.

Tuesday will be very important for gold. US inflation data will be released. The incoming data shows good signs, a pullback is expected. If that happens, the Fed will raise interest rates by 25 basis points.

“AGGRESSION CAN BE NOTICED AT ANY TIME”

Investors should be careful, aggressiveness can appear at any moment. I think we may see stronger gold in the second half of 2023. ”

INCREASED IN THE MARKET BY 2 PERCENT

Before Friday’s critical development, an ounce of gold that was worth around $1,830 hit $1,870 and hit a one-month high. An ounce of gold, which was up more than 2 percent daily, closed the week at $1,869. On a weekly basis, an ounce of gold is up 0.7 percent.

On the last trading day of the week, a gram of gold, which hovered around 1,118 lira before the US data came out, surged to 1,140 lira and tested a one-month high. Gold per gram, up more than 2 percent, closed the day at 1,140 liras.

Looking at the price performance on a weekly basis, a gram of gold gave investors 1.2 percent. Islam Memish said that the strength of the dollar caused other currencies, gold, silver and cryptocurrencies to decline.

RECOVERY IN GOLD PRICES MAY BE FAST

Noting that in the medium to long term the price of gold could rise above $2,250/oz, Islam Memish said: “The price of an ounce of gold continues to be below its value and recovery could be quick.” said.

GOLD FORECAST: ISLAMIC MEMIS GRAM GOLD AT THIS PRICE AFTER JUNE

Islam Memish, who also made a price per gram estimate, provided figures for the period after June. Islam Memish interprets the gram of gold as follows: “Gold on the free market fell from 1200 lira to 1128 lira. On the screens, it decreased from 1170 lire to 1955 lire. Investors should not forget this; There is a 30 lire difference between the screen and the free market. They ended the buy-sell market due to a scissor break. In the short term, I will be looking at the 1100-1000 TL range on the gold gram side.

Those who will trade should follow this scissor range and not make any wrong moves. Gram gold continues to receive support from either the dollar or the ounce as it is a two-way instrument. A gram of gold may rise in price to 1450-500 thousand liras after June.

My expectations have not changed. Every squeeze, every suppression is a harbinger of larger attacks. A gram of gold is below its value, like an ounce. What you have must wait, and those who want to take it must hurry. These levels are not sell levels, but buy levels.