Is the rally just starting?

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SAFAKNA TURKEY – Silicon Valley Bank, one of America’s (US) largest banks, went bankrupt on March 11, making it one of the largest recorded bankruptcies in the US since the 2008 crisis. Following this bank, Silvergate Capital and Signature Bank declared bankruptcy in the US. It was announced that the banks went bankrupt due to the downturn in the cryptocurrency market and the loss of US Treasury securities they hold in their portfolios. Investors took refuge in gold, which they considered a “safe haven”, fearing that the US crisis could spread to other banks in the US and Europe after successive bankruptcies.

EXCEEDS 2 THOUSAND DOLLARS

Following the development of events, the price of an ounce (31.1 grams) of gold on Thursday tested the level above $2,000 for the third time. For the first time in the history of gold, it exceeded 2 thousand dollars on August 5, 2020, and saw its last peak on March 8, 2022 with 2 thousand 70 dollars. With growth below the ounce, the gram broke the record and reached 1244 lire. However, experts again highlighted the price difference between the screen and the market. The jewelers at the Grand Bazaar said, “There is a difference of 30 lira in grams between the screen price and the Grand Bazaar price. For this reason, consider the free price, not the quantity on the screen, ”the citizen warned.

GOLD AND MONEY MARKET SPECIALIST ISLAM MEMISH: RALI JUST BEGINS

Saying that bank failures and various crises reduced the demand for risky assets, gold and money market specialist Islam Memish said: “Gold started to rise thanks to the support it received from the banking crises. At the moment I’m waiting for profitable sales. The rally below is not over yet, it is just beginning. An ounce of gold in the summer can rise in price to 2350 dollars. Because the banking crisis continues and there is a possibility that it will spread to other countries. In addition, a positive impact on gold has a slowdown in the rate of increase in interest rates by the US Federal Reserve and the persistence of geopolitical risks in the world.

BREAKING RECORDS EVERY DAY

Is the rally just starting? Discourse

Memish said that a gram of gold also updated the record every day for a week in light of the events, and said: “There is a difference of 30 lira between the price in the Grand Bazaar and the price displayed on the screens. Citizens should be looking at free market prices, not a number on a screen. At the Grand Graham Bazaar, it rose to 1264 lire. Although prices per gram sometimes drop because of the ounce, this decline will not be permanent. After the summer we will talk about 1300-1400 lire per gram. As in September, it could be 1550 lire. So those who have gold should not be in a hurry to sell. Those who don’t should see the decline as a buying opportunity.”

9 out of 10 people buy

Is the rally just starting? Discourse

A jeweler at the Grand Bazaar claimed to have been monitoring citizen activity and said: “Despite the current growth, citizens continue to buy gold in direct proportion to their purchasing power. They buy gold instead of foreign currency because the currency is calm. Currently, 9 out of 10 people who come to the Grand Bazaar come to buy and 1 to sell. Sales, on the other hand, are not for profit, but rather out of necessity. In other words, the citizen is still waiting for the price of gold to rise and is turning to gold to protect the value of his money.”

MEHMET ALI YILDIRIMTURK, GOLD AND CASH MARKET SPECIALIST: GRAM GOALS

Is the rally just starting? Discourse

Gold and money market specialist Mehmet Ali Yıldırımturk, stressing that the negative consequences in the banking sector are unnerving the markets, said: “Despite the statements of the authorities on this issue, investors turned to gold. An ounce of gold rose to $2,000, breaking a record. The gram also rose to 1240 lire from here. In the next period, even if it slightly decreases after satisfactory explanations from the central banks, global risks will actually remain. In other words, street movements in Europe, the Russia-Ukraine terrorist attacks and the electoral process in our country will also affect the price of gold,” he said.

DON’T FALL TOO HARD

Is the rally just starting? Discourse

Saying that the citizen had recently invested in gold to protect his money from inflation, Yıldırımturk said: “The first target is 1,250 lira per gram, then I expect it to increase to 1,300 lira. Gold offers medium to long term buying opportunities. For example, in a week it dropped to 1216 lira. I think these places are suitable for purchase. If optimism in the markets rises, the price of a gram of gold will fall to a maximum of 1200 liras. I don’t expect it to get any lower. When it comes to sales, people need to act on their profit expectations as the world’s exchange rate is very volatile.”

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