Gold Rally Accelerates: Gram Gold Surges to 6,384 Lira

The search for safe havens in the markets, coupled with expectations that the Federal Reserve's (Fed) hawkish stance will weaken, has propelled gold to new peaks, driving gram gold to the 6,384 lira level.

Geopolitical Thaw and The Fed's Pivot

Increasing expectations for a near-term agreement between the US and Iran within the scope of permanent peace talks in the Middle East, alongside predictions that the Fed's hawkish stance will soften, are strongly supporting precious metal prices. Positive statements regarding the opening of the Strait of Hormuz from US Treasury Secretary Scott Bessent and Secretary of State Marco Rubio have pulled oil prices and bond yields lower, while boosting interest in alternative assets.

■The price of a barrel of Brent crude for October delivery fell by 5.5% to $79.4 yesterday, marking the lowest level in about a month.

■According to analysts, the pullback in oil weakened expectations that the Fed would raise interest rates once by the end of the year.

■The dollar index fell below the 100 level as expectations for the Fed's hawkish stance diminished.

Sharp Surge in Pricing

Gram gold started the new day with a buyer-heavy trend, capturing a 2.5% increase during the day and drawing significant attention. The reflection of the movement in ounce gold on the TL basis caused investors to rebalance the weights in their portfolios.

■As of 09:25, gram gold is trading at 6,384 lira, a 2.5% increase over the previous close.

■Quarter gold is finding buyers at 10,393 lira, while Republic gold is at 41,384 lira.

■Ounce gold is trading at $4,172, up by 2.3% at the same time.

Analysts note that the domestic data agenda is calm today, while globally PMI data and ADP private sector employment data in the US will be monitored.

From a technical perspective, the permanence of the dollar index below the 100 level and the voluminous 2.3% rise in ounce gold triggered the break of the upper band of the Ichimoku cloud in gram gold. Our algorithmic trading models indicate that if the price closes above 6,400, the Fibonacci extension 1.618 level will be targeted. This softening in the Fed's rate path technically makes testing the 4,200 resistance level in ounce gold possible.