Gold prices rose after the US Central Bank’s (Fed) warnings that there may be new declines in stock markets and asset prices due to the corona virus, and economic recovery may come to an end next year.
The ounce price of the quotation on the spot market in London has reached the peak of the last seven years with $ 1764 today. The price of gold rose to TL 390 gram this morning in Turkey. However, there was no record in gold prices in TL since the dollar / TL exchange rate dropped from 7.26 to 6.90 last week.
Concerns about the epidemic continue
In a report released by the Fed on Friday, May 15, it was stated that the commercial real estate sector is one of the sectors that can take the hardest hit if the outbreak continues. Fed President Jerome Powell also said that the economic recovery in the USA could reach the end of 2021 and that the developments depend on the vaccination and distribution.
According to Bloomberg’s report, senior analyst Gavin Wendt from MineLife Pty said, “Financial markets are pricing the best scenario that economic incentives will ensure rapid recovery, but the truth will probably be very different and the recovery will probably be much more problematic. He will benefit from the extraordinary increase in the gold money supply. ”
3-year course of ounce gold prices
“MAY RISE 1800 $”
The famous & Co evaluation note, which is said to “advance ounce of gold,” said the following statements:
“Although the global markets are starting the new week in a moderate tone, besides the tension between the USA and China, the concerns about the economy remain valid and in this context, the fact that more support to the economy, especially in the USA and the Euro Zone, remains on the agenda.
While the downward risks in economies are high, the Fed’s negative interest rates are reflected as strong purchases, especially in the note.
When we look at the above $ 1750, we think that the upward trend in the short term will gain strength towards $ 1800 ”.
