Istanbul Gelisim University - “Rising gold prices in summer cannot be explained by weddings”

“Rising gold prices in summer cannot be explained by weddings”

Stating that from the past to the present, gold has been seen as a safe haven by all segments under all circumstances, Finance Specialist Assoc. Prof. Hakan Yıldırım made statements about gold prices, which rose in the summer months. Yıldırım emphasized the impact of international markets, saying that the rising gold prices in the summer are not related to weddings.

Stating that even those who do not have financial literacy highly trust in gold, Finance Specialist Assoc. Prof. Hakan Yıldırım said “It is said that the number of weddings would increase in India and Turkey, so the demand for gold would increase. Were there any justifications? Yeah. As the demand increases, so does the price. However, economics can not support the idea that the gold prices increase only due to this condition.”

“THE RISE OF GOLD PRICES HAS NOTHING TO DO WITH WEDDINGS”

Emphasizing that gold prices have nothing to do with weddings and ceremonies, Finance Specialist Assoc. Prof. Hakan Yıldırım said, “The gold price is falling in the international markets because all the important macroeconomic statements made by the US and the Fed's interest rate decisions have an important role in the decline of gold prices. For instance, the FED has decided to increase interest rates and aims to increase interest rates twice until 2023. This situation will be reflected in the commodity market and gold prices will have to show a downward behavior. On the other hand, the fact that the VIX index, known as the fear index, is falling and going below 30.00 can be expressed as one of the important reasons.”

“GOLD IN GRAM IS BELOW THE EXPECTED PRICE”

Evaluating the gold prices in grams, Assoc. Prof. Yıldırım said, “FED statements, the decrease in the VIX index and its movement below the 30.00 level, the shift of investments of a certain segment seeking confidence to crypto assets, the noticeable decrease in gold prices in ounces against US Dollars, the squeeze in the price movement of the Dollar / TL parity may be the reasons why gram gold prices remain below the expected price level.”

"Gold in ounces is priced in dollars, while gold in gram is priced in Turkish lira," said Dr. Yıldırım who also underlined that this is the most important issue that investors should know. He also said “The situation is that while gold is at a low price level in terms of dollars in ounces, gram gold is not at the expected level since the Dollar/TL rate is also at a low level for gold prices, although it is not low for us.”