Russia-Ukraine War, NATO Summit, Federal Government … The latest status of gold prices!

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Market eyes are looking at the NATO Extraordinary Leaders Summit in Brussels today on the Ukrainian agenda. After the summit, a joint statement was issued. “We strongly condemn the attacks on Russian civilians. Russia’s attacks threaten the security of the world,” the statement said. US President Joe Biden is expected to take new sanctions against Russia after the NATO summit, but these developments are expected to impact the market. In the case of President Biden’s strict sanctions on Russia, there will be an increase in ounce gold prices with the effect of a “safe harbor.”

Gold’s ounce price went down after rising to $ 2070 on March 8, but the United States and the United Kingdom imposed an embargo on Russia. It keeps its movement in a narrow band throughout the week. One ounce of gold is at its highest level of $ 1957 today. Looking at the lowest level of $ 1937; it traded at $ 1950 with an increase of 0.33% in these minutes.

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The effect of the Federal Reserve

A hawkish statement in a speech by Federal Reserve Chairman Jerome Powell last Monday raised expectations that the market could raise interest rates by 50 basis points at its next meeting. “The Fed will raise interest rates by more than 25 basis points at a time as needed,” Powell said in a speech. Following these statements, US 10-year bond yields reached their highest levels since May 2019. The world stock index has also fallen. Ounce gold prices are generally inversely correlated with US bond yields. After Powell’s positive remarks, it tended to fall.

The next meeting of the Federal Open Market Committee (FOMC), which sets monetary policy for the Federal Reserve, will take place May 3-4. With the Fed starting to shrink its balance sheet at this meeting, the chances of a 50 basis point rate hike have increased. The Federal Reserve Board raised interest rates about three years later at a meeting held March 15-16. The biggest reason the Fed is pushing the rate hike calendar is the fact that US inflation is at its peak in 40 years.

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Gram Gold Rise

During the day, the highest level of 936.01 lira and the lowest level of 922.80 lira were seen while the price of gold in grams was rising due to the rise in the dollar rate and the effect of the price of gold in ounces. Gram Gold is at the level of 929.82 lira, up 0.23 percent at 16:24. For the same amount, Quarter Gold will trade at 1519 Lira and Republic Gold will trade at 6,251 Lira.

At the closing price of the Turkish market yesterday, the gram gold price was moving at the level of 922 lira. Started a new day at the level of 923 Lira.

Russia-Ukraine War, NATO Summit, Federal Government ... Latest Gold Price Status

Disclosure of strict sanctions can result in purchases of less than $ 10.
Onurcan Bal – Gedik Investment Research Assistant Manager

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Russia-Ukraine War, NATO Summit, Federal Government ... Latest Gold Price Status

The fact that the war between Russia and Ukraine has increased geopolitical concerns, increased the tendency to avoid risks and led to a tendency towards safe harbors has led to an upward trend in gold from February to the second week of March. Contributed. Especially in the first week of March, ounces of gold, which experienced a significant rise, tested the $ 2070 level on March 8. However, since the second week of March, statements on negotiations between Russia and Ukraine have supported optimistic expectations, regaining risk motivation and yielding less than an ounce of sales.

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Some geopolitical concerns have subsided, and while the ounce’s downtrend before the Fed’s meeting came to the fore, a pull back from the $ 2070 level to $ 1,895 has come to the fore. rice field. The Fed raised interest rates by 25 basis points, in line with expectations at its March meeting, but this was the first rate hike since 2018. Published economic forecasts predicted interest rate hikes at all meetings this year. The Russian-Ukraine War has led to sharp rises in oil commodity prices in particular, but global inflationary concerns have also affected the Fed’s message.

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Development between Russia and Ukraine will be decisive

This week, Fed Chair Powell said the Fed could raise interest rates by more than 25 basis points if needed. A statement by Fed members found that a 50 basis point rate hike was upheld. Concerns over monetary tightening policies have put pressure on an ounce of gold, while hawkish messages from the Federal Reserve have led to higher global bond yields. Development between Russia and Ukraine will continue to determine ounces of gold in the short term. If the war between the two countries continues and intensifies, it could contribute to the continued rise of the ounce gold front.

However, although the ongoing talks between Russia and Ukraine agreed to end the war, no significant progress has been made so far, indicating that corrective actions are gaining momentum. For this reason, it is necessary to carefully track trends and news flows, especially on the Russian and Ukrainian fronts, taking into account that some trends may cause price fluctuations that fluctuate below an ounce.

The market will continue closely after the NATO and G7 summits in Brussels today. US President Joe Biden is expected to announce new sanctions against Russia within the summit, but the possibility of sanctions will affect risk motivation and an ounce of gold flow. When strict sanctions were announced, the market’s risk needs were weakened and less than an ounce of purchases proved to be effective.

In the medium term, the eyes will be the central bank

In summary, geopolitical developments have a decisive impact on gold ounces in the short term, while central bank decisions, especially the Fed, have a decisive impact on medium-term pricing. The continued risk of rising inflation and the central bank’s monetary tightening policy, especially the Fed’s monetary tightening policy, could put pressure on an ounce of gold, and the volatile course recorded in the second half of 2021 could continue.

$ 2000 important to keep rising

For continued pullbacks under an ounce, we can see that the $ 1930 and $ 1.900 levels were the first key support points and the selling pressure was below $ 1.900. In this case, you can see that the $ 1,850- $ 1,800 compression area observed in the previous month has come to the fore again. If it rises in response to development, the $ 1955- $ 1975 levels of $ 2000 and $ 2000 are resistance points. We believe that a closing of over $ 2000 is required for the upward movement to regain strength. Beyond $ 2000 in 2020, you can test the $ 2042 and $ 2070 levels tested on March 8th. The $ 2100 level can be targeted below an ounce, and rises above 2070 can be empowered.