Gold Finds Its Footing After Hitting One-Month Low
Gold prices stabilized on Thursday after sliding to their lowest point in a month, as buyers stepped in to absorb the recent selloff. The precious metal had come under pressure from a stronger dollar and shifting expectations around Federal Reserve interest rate policy, which had pushed prices down sharply in recent sessions. Bargain hunters and safe-haven buyers provided enough demand to steady the market.
The pullback in gold came as investors reassessed how long the Fed might keep rates elevated. Higher interest rates make gold less attractive because the metal pays no yield — when you can earn real returns in cash or bonds, the case for holding gold weakens. That dynamic has been the dominant force behind gold's volatility in recent weeks, creating sharp moves in both directions.
For Turkish investors, this story has an extra layer. Gold priced in Turkish lira has behaved very differently from dollar-denominated gold, because the lira's depreciation has cushioned — and sometimes amplified — every global move. When dollar gold dips but the lira also weakens on the same day, Turkish holders barely feel the fall. The question now is whether this stabilization marks a floor, or simply a pause before the next leg down.
Levent KAYIRA Commentary: Ekonomik Gündem Analysis: Gold at a one-month low in dollar terms sounds alarming, but Turkish investors need to run a different calculation. With the USD/TRY rate hovering above 38, a 1-2% dip in dollar gold can be almost entirely wiped out by even a modest lira move on the same day. That is the built-in cushion that has made gram gold in Turkey one of the most resilient savings instruments over the past five years.
Here is the number that matters: gram gold in Turkey has delivered roughly 40-50% annual returns in lira terms over the past three years — not because gold itself was extraordinary, but because the lira was weak. That structural story has not changed. The Central Bank of Turkey's rate at 46% creates a competing incentive, but only for those comfortable keeping money in lira deposits.
From my banking years, I watched clients pile into gold every time rates rose because they simply did not trust that high deposit rates would outlast inflation. That instinct is still rational today. The real risk for Turkish gold holders is a scenario where the lira suddenly strengthens sharply — possible but not the base case. Until that changes, buying the dip in gold remains a defensible move for ordinary savers.
Kaynak: Google News Ekonomi