Search for balance after record gold

Gold prices are moving sideways on the second trading day of the week after reaching a record high in the early week session due to expectations that the US Federal Reserve (Fed) will cut interest rates. The rise in gold prices was triggered by investors interpreting Fed Chair Jerome Powell's statements on Friday as a signal for an interest rate cut. However, warnings that optimism in this regard was high followed one another later. An effort to balance was also seen in gold along with the rise in bond yields and the dollar. After rising as much as 3.1 percent in the early hours of Monday, gold is moving sideways at $2,033 on the second trading day of the week with a slight increase of 0.2 percent. Gram gold, calculated based on the ounce of gold and the interbank Dollar/TL exchange rate, reached a new historical peak of 1,985 TL during the night hours and then dropped to 1,900 TL. Gold prices have increased by 11 percent since October Spot gold has increased by approximately 11 percent since early October. Initially boosted by safe-haven buying following Hamas’ attack on Israel, gold later found support on expectations of easing monetary policy in the U.S. The swap market is still pricing in a 55% chance that the Fed will cut borrowing costs in March. Investors will be watching key data over the next few days for clues on the central bank’s next steps. “Looking ahead to 2024, changing monetary policy, an economic slowdown and increased volatility could create a positive environment for gold,” said Robin Tsui, Asia-Pacific gold strategist at State Street Global Advisors. Tsui said investors will continue to monitor geopolitical tensions and the latest U.S. employment data from Friday.