Reasons for the Recent Rise in the Price of Gold in Türkiye

The crisis in the global banking system affects gold prices significantly.

Expert Bilgin Mavis told a newspaper that the temporary closure of First Republic Bank shares in the United States brought back concerns about the banking sector, which led to an increase in the price of an ounce and a gram of gold.

He said that if the aforementioned bank is not rescued, precious metals may reach record levels, especially gold.

As for the interest rate of the US Federal Bank, there are those who expect the Federal Reserve to continue raising interest rates, and they believe that it will raise 25 basis points and take a break. Recently, there are those who speculate that the Federal Reserve may cut interest rates after raising interest rates in May.

Commenting on it, Fitch said that a recession is still expected in the US as the Federal Reserve stops raising interest rates.

Mehmet Yilmaz, Chairman of the Gold Miners Association, said in his statement that the Central Bank has bought almost all the gold produced in Turkey over the past 1.5 years.

He continued, “This gold did not go abroad and there is no problem with the supply of gold. The fact that the central bank is the best buyer in the market affects the local prices.”

He pointed out that the Turkish Central Bank bought 30-35 tons of gold in 1.5 years, while Turkey’s potential is about 6,500 tons.

From this point of view, the Turkish Central Bank has important purchases. There is no shortage of gold, which indicates strong demand.

Yilmaz added, “Turkey produced 45-50 tons of gold in the past 15 months. 15-20 tons of this amount were paid directly to the state and the remaining 30-35 tons were bought by the Central Bank, which is a very large amount. I think this It also has a share in the price increase locally.”

He stressed that the Central Bank is making these purchases to enhance its reserves and considered it an important strategic step.