Ounce gold fell below $4,300 before the Fed decision

Ounce gold in global markets continues to decline due to the selling pressure that has been continuing since the first half of September. The ounce of gold, which fell to 4 thousand 266 dollars during the day, fell below the 4 thousand 300 dollar level, which Saxo Bank pointed out as the critical threshold in the short term. The loss of this support, where buyers concentrated, increased the pressure on the technical outlook of gold before the critical Fed decision.

4 THOUSAND 440 DOLLAR THRESHOLD FOR GOLD FROM SAXO BANK

Ole Hansen, Head of Commodity Strategy at Saxo Bank, stated that the price must rise above the $ 4,440 level again for the current downward trend in gold to weaken.

The increase in ounce gold from 4 thousand 266 dollars to 4 thousand 440 dollars means an increase of approximately 4 percent. However, analysts emphasize that seeing this level alone will not be enough to confirm the recovery, and that it is also important for the price to maintain permanence above $4,440.

3 FACTORS THAT INCREASE SALES PRESSURE

Three main developments stand out in the retreat in the precious metal market.

Fed interest rate expectation: Uncertainty regarding the Fed's interest rate decision and the possibility of a more hawkish interest rate path increases the alternative cost of gold, which does not yield interest.

The rise in bond yields: The fact that US 10-year bond yields exceeded 5 percent during the day and reached the highest levels in recent years increases the attractiveness of fixed income assets.

Strengthening dollar: The rise in the dollar index makes ounce of gold more expensive for investors using other currencies.

The rise in Brent oil prices strengthens inflation concerns and the expectation that the Fed will continue its tight monetary policy also limits the safe haven demand for gold. Despite the geopolitical risks in West Asia, developments on the interest and dollar front put stronger pressure on gold.

SALES SPREAD TO OTHER PRECIOUS METALS

The sale in the markets was not limited to ounces of gold. While the silver price fell to 63 dollars, similar movements were observed in platinum and palladium.

The decline in precious metals in general reveals that the selling pressure is not specific to gold and that global interest and dollar expectations are decisive in pricing in the market.

EYES ON THE FED'S DECISION TOMORROW

As the Fed's two-day meeting begins, the interest rate decision will be announced on September 16 at 21:00 CET. Following the decision, Fed President Kevin Warsh will hold a press conference at 21.30 GMT and new economic projections will be shared.

Markets focus not only on the interest rate decision but also on the policy signals that the Fed will give for the upcoming period. In particular, messages regarding the interest rate path are expected to be decisive in gold prices.

GRAM GOLD HOLDS ON WITH EXCHANGE SUPPORT

Despite the sharp retreat in ounce gold, gram gold displays a more horizontal appearance in the domestic market. The volatility in the Dollar/TL exchange rate limits the direct reflection of the decline in ounce gold to gram gold.

As of September 15 transactions, gram gold continues to hold above the level of 6 thousand 700 TL.

According to Saxo Bank, in the long run, the increase in public debt and gold purchases by central banks may continue to support prices. The short-term direction is expected to become clearer with the Fed's interest rate decision tomorrow and the messages it will share afterwards.