Gold Drops Below $4 Thousand for the First Time Since July

Gold completed a week in which it dipped below the $4 thousand threshold for the first time since July with its latest session close at the $4,007.90 level, while conflicts in the Middle East pushed oil and natural gas prices higher. As commodity market prices swung in different directions throughout the week, high interest rate expectations pressured precious metals, while supply concerns came to the forefront in the energy market.

How did the latest session closes take shape in gold and silver?

An ounce of gold, which suffered a daily loss of 1.29% in the previous session, dropped from the $4,060.40 level of the previous close to $4,007.90. Intraday, a low of $3,989.10 and a high of $4,050.20 were tested. Silver an ounce, where selling pressure was felt, also declined 1.92% in the last session to $53.95. While silver closed at the $55.01 level in the previous session, it traded in an intraday range between $53.08 to $54.80.

In contrast to the pullback in precious metals, geopolitical tension drove pricing on the energy side. While conflicts in the Middle East triggered supply concerns regarding oil and natural gas shipments, natural gas in Europe climbed to its highest level recorded since December 2022. High interest rate expectations weighed on non-yielding metals, while fears of supply disruptions in the energy market strengthened the upward momentum.

How is the rise in energy prices affecting markets?

Price movements in global commodity markets affect Turkey's economy through energy costs, exchange rates, and foreign trade balance channels. While the rise in oil and natural gas carries the risk of increasing the energy import bill, the decline in precious metals and the high global interest rate environment play a decisive role in foreign exchange dynamics and export demand.

This content is for information purposes only and does not constitute investment advice.