Oil rose, gold fell: FED interest rate expectations put pressure on gold

Oil rose, gold fell. Gram gold lost 2 percent of its value this week. On the last trading day of the week, gram gold reached 6 thousand 749, quarter 10 thousand 818, half 21 thousand 602 and full 43 thousand 203 lira.

All eyes in the markets were on the meeting between US President Trump and Chinese President Xi Jinping. The safe haven completed the week with a horizontal course. So, will gold rise again? All eyes are also on the expectation of the end of the year. CNN Turk correspondent Emel Telli asked Gold and Money Markets Expert Şirin Sarı.

Here are the highlights from Sarı's statements;

"IT ENSURE THAT GOLD IS NOT PREFERRED"

The impact on gold came mostly from the FED's interest rate increase last week. When interest rates increased, we saw an increase in value in the dollar index. We see that there are serious outflows from US bond interest rates. There are prices for almost the last 25-30 years, and the expectation of an interest rate increase in October is increasing, reaching up to 70 percent expectation. In other words, the interest rate increase may come again in October. All of these ensure that gold is not preferred against interest.

TRUMP-XI MEETING

On the Chinese side, many topics were discussed, especially the Taiwan issue, heavy metals issue, rare earth elements, but frankly there was no development that affected the market.

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