Gold prices rise slightly but face risk of weekly loss

The ounce price of spot gold increased by 0.2 percent to $4,288.36. On the other hand, the precious metal decreased by approximately 2 percent throughout the week. US gold futures also rose 0.6 percent to $4,323.10.

Gold type Gold price Gram gold 6,726 TL Quarter gold 11,005 TL Republic gold 43,879 TL Ounce gold 4,270 dollars Half gold 22,003 TL Full gold 43,630 TL Gremse gold 109,410 TL

The appreciation of the dollar and the rise in US Treasury bond yields were effective in the weekly decline in gold. The strengthening of the dollar puts pressure on demand by making gold priced in dollars more expensive for investors using other currencies.

FED IS AT THE FOCUS OF THE MARKET

OANDA Senior Market Analyst Kelvin Wong stated that the main focus in the gold market continues to be interest rates.

Wong stated that the markets started to price a more hawkish Fed policy, supporting the dollar and this put pressure on gold.

The expectation that interest rates in the US may remain high for a longer period of time has become even stronger after the policy rate was increased by 25 basis points last week. The statements of two Fed officials that additional interest rate increases may be necessary as part of the fight against high inflation also affected the expectations in the markets.

FIGHTING INFLATION MESSAGE

Philadelphia Fed President Anna Paulson stated that returning inflation to the 2 percent target is a priority and said that she will support the monetary policy path that will achieve this target.

Statements by New York Fed President John Williams also indicated that the possibility of a tighter stance in monetary policy was on the agenda.

A high interest rate environment can reduce the appeal of gold, which does not offer interest income. On the other hand, gold has traditionally been considered a safe haven and hedging tool, especially during periods of inflation and economic uncertainty.

GEOPOLITICAL RISKS MAY SUPPORT GOLD

J. Rotbart & Co. Its founder, Joshua Rotbart, stated that he maintained his optimism for gold for the remainder of the year.

Rotbart stated that ongoing geopolitical tensions and increasing public debt may support the demand for safe haven assets.

LOSSES EXPECTED IN OTHER PRECIOUS METALS AS WELL

The expectation of weekly losses in other members of the precious metals also came to the fore.

While spot silver decreased by 0.1 percent to $63.81, platinum increased by 0.5 percent to $1,756.90. Palladium lost 1.3 percent in value, falling to $1,257.56.

Silver, platinum and palladium are also expected to end the week with a decline.