Increasing uncertainties in global markets, the possibility of the US economy entering a recession and international trade wars, as well as US President Donald Trump's pressure and dismissal threats against Fed Chairman Jerome Powell, are pushing gold prices to new highs.
The world economy has recently begun to take shape, especially under the influence of developments in the United States. The decisions and statements made by US President Donald Trump have direct effects on interest rates, gold prices and inflation.
Trade Wars and Recession Fears Drive Gold Higher
Concerns that the trade wars initiated by President Trump could lead to a recession in the global economy are pushing investors to seek safe havens. This is supporting gold prices upwards, as gold has traditionally been considered a reliable investment tool in times of uncertainty.
Trump's Fed Pressure and Threat of Impeachment
In addition, President Trump’s constant pressure on US Federal Reserve (Fed) Chairman Jerome Powell to lower interest rates and even raising the possibility of his dismissal are also increasing uncertainty in the markets. Such interventions against the independence of the central bank reduce investors’ risk appetite and fuel demand for gold.
New Highs in Ounce and Gram Gold
With the impact of these global developments, the ounce of gold broke a new record by rising to $3425 during the day after starting the day at $3500. It is currently traded around $3491.
Domestically, gram gold started the day at 4208 lira. Gram gold, which saw a lowest level of 4195 lira and a highest level of 4305 lira during the day, is currently finding buyers at 4292 lira. This upward trend in gold prices is expected to continue as long as global uncertainties continue.
