As the central banks entered interest rate cuts and most importantly, trade wars increased global risks, gold started to attack in the second half of this year with demand for safe haven.
The precious metal saw the peak of 6 years, rising to $ 1,534 in the previous week, while last week was near $ 1,500. Gold rose again on Friday after Fed President Powell highlighted global risks in his Jackson Hole presentation, climbing to $ 1,560 after rising tensions between the US and China, the highest level since April 12, 2013.
US President Trump had decided to impose additional sanctions during negotiations with China, followed by retaliation from China and later announced that the sanctions were postponed to December. At the weekend, they announced that they increased the current 25% sanction to China by 5%.
He cited China’s tax and unfair profits on US products. After Trump’s decision, China also announced that the necessary steps would be taken and the tension in the trade wars increased and risk appetite decreased.
While developing countries’ currency and oil depreciated, safe assets such as gold and yen and francs started to rise.
In addition to the rise on the ounce side, the USDTRY exchange rate rose to 6.40 in the free market during the Asian session and domestic gram prices broke a historical record. Gram, up to 320 TL in the free market after the domestic session rose to 295 TL.
Gold prices, which rose to historical peak with dollar exchange rate and ounce increase, are traded at 286 TL in the last hour.