Gold prices experienced a retreat on Tuesday, driven by shifting expectations regarding US monetary policy and geopolitical activity in the Middle East. International gold prices per ounce fell to 4,049 USD, representing a 0.7% decrease. [claim:4]
In the Turkish market, gram gold was trading at 6,169 TL as of 09:45, a 0.6% decline from the previous close. [claim:2] This follows a previous day where gram gold closed with a 0.61% increase at 6,205 TL. [claim:7]
Price per ounce of gold in international markets following a 0.7% decrease.
Monetary policy and political pressure
The market is reacting to comments from US President Donald Trump, who called for the Federal Reserve to implement interest rate cuts, stating the US should maintain the lowest interest rates in the world. [claim:8] While analysts noted expectations that the Federal Reserve might keep the policy interest rate unchanged, they observed this is not yet fully priced in. [claim:11]
Attention is also focused on Federal Reserve Chair Kevin Warsh, with expectations that he may provide statements regarding inflation risks and the possibility of maintaining a tight monetary policy. [claim:12]
Geopolitical risks and sector liquidity
Geopolitical tensions persisted as Saudi Arabia, Jordan, and Iraq reported drone attacks yesterday. [claim:10] Amidst this, US President Donald Trump stated that reaching an agreement with Iran is a “good possibility,” but noted that military operations could resume if negotiations fail. [claim:9]
In addition to geopolitical factors, analysts stated that a liquidity squeeze in the semiconductor sector led some investors to sell gold to generate cash for margin calls. [claim:13]
Market participants are also awaiting upcoming US economic data, including wholesale inventories, the housing price index, the Richmond Fed manufacturing index, and the New York Fed consumer confidence index. [claim:14]