Bears Take Over: Gold and Silver Face Heavy Selling Pressure

Gold and silver markets opened the week under significant selling pressure as the bearish scenario many analysts warned about began playing out Monday morning. Both precious metals retreated sharply, with the move catching retail investors who had piled into gold during recent highs particularly off-guard. The warning signs were there, but the speed of the reversal surprised even seasoned traders.

The selloff is being driven by a combination of a stronger US dollar, rising Treasury yields, and fading expectations for near-term Federal Reserve rate cuts. When the dollar strengthens, gold priced in dollars becomes more expensive for foreign buyers, dampening global demand. At the same time, higher yields make non-interest-bearing assets like gold and silver less attractive compared to bonds that actually pay you to hold them.

For Turkish investors, the picture is more complicated. The lira's continued depreciation provides a partial cushion — gram gold prices in Turkish lira don't fall as hard as the dollar price suggests. However, if the global selloff deepens and the lira stabilizes or strengthens even slightly, Turkish gold holders could face losses on both fronts simultaneously. This week's price action will be critical in determining whether this is a healthy correction or the start of a longer downtrend.

Levent KAYIRA Commentary: Ekonomik Gündem Analysis: After months of record highs, gold pulling back was never a question of if — only when. Dollar gold peaked above $3,300 and gram gold in Turkey was trading near 4,000 TL. Those are levels that historically trigger profit-taking, and that's exactly what we're seeing now.

Here's the banking lens on this: when I managed portfolios at Garanti and Denizbank, we always tracked the real yield on US 10-year Treasuries as a leading indicator for gold. When real yields rise — meaning bond returns beat inflation — gold loses its shine fast. Right now, real yields are climbing, and that's a direct headwind.

For the small business owner in Istanbul who bought gram gold at 3,800 TL as a safe haven, a 5-10% correction means real money lost. For the fund manager, this is a rebalancing opportunity, not a panic moment. The key question: is the lira moving fast enough to offset dollar gold's decline? Currently, it isn't. Monitor the 3,950 TL gram level — a close below that changes the short-term outlook meaningfully.

Kaynak: Google News Ekonomi