Gelisim News

In recent days, precious metals such as gold and oil are among the investment instruments that investors closely follow. Finance experts Express that taking into consideration weekly crude oil stocks announced by American Petroleum Institute, the decline of 5,945 million barrels is seen. This situation contributes to the increase in oil prices. The main reason for the increase in oil prices is expressed as the agenda item on the US-Iran tension. The attack on the US base, in particular, is cited as one of the biggest reasons for the rise in oil prices. Regarding on the shaping the markets in the future after the Iranian Revolutionary Guards Army’s air ballistic missiles attack to US bases stationaed in Iraqi Anbar and Arbil cities Financial Markets Specialist from Istanbul Gelisim University Asst. Prof. Dr. Hakan Yıldırım made comments.

“INCREASE IN VOLATILITY IS OBSERVED”

Indicating that globally increasing geopolitical risks cause not only oil prices, but also commodity prices, which are regarded as safe investment instruments such as gold, Asst. Prof. Dr. Hakan Yıldırım from Istanbul Gelisim University said: “When both individual and institutional investors accept gold as a safe haven, they channel their investments in the face of the global crisis and negative repercussions. While companies try to hedge foreign currency with gold, investors prefer to buy gold instead of investing in stocks, foreign exchange and similar investment instruments. In this case, gold can be priced high by buying pressure. Especially when the gold prices in ounces are analyzed, it is seen that the volatility has increased.”
 
“GOLD PRICES WILL NOT BE REDUCED”

Asst. Prof. Dr. Hakan Yıldırım from Istanbul Gelisim University continued as follows: “Since the beginning of 2019, the daily gold price has been priced at the highest level of 1,611.52 ounces, the lowest of 1,266.10 and an average of 1,397.48. The price of ounces of gold, which increased by 23.49 percent, broke the levels of $ 1,500.00 following the tension between Iran and the USA and moved far from the gold price of $ 1,397.48 on average. Gold prices may settle into a new band in ounces. It may be difficult to return to $ 1,300.00 for a long time. Although this does not mean that gold will increase continuously, it may be a signal that the possibility of decreasing prices is a little difficult as a result of global tension and increased geopolitical risks.”