Gold prices fall on Fed interest rate expectations, oil declines

Spot gold decreased by 0.1 percent to $4,281.98 per ounce. US gold futures contracts did not show a significant change in December delivery and were traded at $ 4 thousand 317.50.

Gold Type Gold Price Gram gold 6.729 TL Quarter gold 11.006 TL Republic gold 43.883 TL Ounce gold 4.284 dollars Half gold 22.006 TL Full gold 43.838 TL Gremse gold 109.931 TL

VT Markets Chief Strategy Officer Ross Maxwell stated that the markets are focusing on whether the Fed will keep interest rates at high levels for longer after last week's interest rate increase.

Maxwell said that investors are also monitoring the movements in the US dollar and Treasury bond yields, and that risks related to oil and energy supply in West Asia are also on the market's agenda.

NEW INTEREST INCREASE EXPECTATIONS CREATE PRESSURE

Maxwell stated that a stronger signal from the Fed regarding a new interest rate increase could increase the downward pressure on gold prices.

Last week, the Fed increased the policy rate by 25 basis points to the range of 3.75-4.00 percent. Increasing inflation pressures and strengthening economic activity support expectations that the bank will maintain its tight monetary policy.

It seems that expectations in the markets that another interest rate increase may occur at the meeting to be held in late October are getting stronger.

OIL DECLINED, GOLD GOT LIMITED SUPPORT

Iran's announcement that it was open to diplomacy to end the war with the USA caused oil prices to decline. However, there are significant differences of opinion between Washington and Tehran on how to end the war.

The decline in oil prices also provided limited support to gold prices, with the expectation that inflationary pressures on energy costs might decrease.

STRONG US DATA AFFECTS INTEREST INTEREST EXPECTATIONS

Data released in the United States on Wednesday revealed that business activity reached its highest level in more than five years in September.

However, strong demand increased the pressure on supply chains and caused prices to rise. This picture strengthens the expectations that the Fed may keep interest rates high as part of the fight against inflation.

Gold, which does not provide interest income, may become less attractive in a high interest rate environment compared to bonds and similar income-generating assets.

'WE DO NOT EXPECT A CLEAR DIRECTION UNDERWAY'

Intesa Sanpaolo economist Daniela Corsini stated that they do not expect a clear direction in the fundamental scenarios for precious metals.

Corsini pointed out that volatility in the markets may remain high and evaluated that gold could be traded at an average of $ 4,200 per ounce for a few quarters.

MIXED TRAVEL IN OTHER PRECIOUS METALS

A mixed outlook was observed in other precious metals.

While spot silver decreased by 0.6 percent to $64.07 per ounce, platinum increased by 0.2 percent to $1,754.05.

Palladium, on the other hand, lost 0.1 percent in value, falling to $1,260.70 per ounce.