Gold prices are on a positive track ahead of tomorrow’s US inflation figures. The ounce of gold is trading at $2,368, up 0.18 percent in early trading.
Changes in Gold and Currency Rates
Gram and quarter gold prices are affected by fluctuations in the ounce gold and USD/TL exchange rate. While gram gold is traded at around 2,505 Turkish Lira, quarter gold is at 4,098 Turkish Lira.
Fed Rate Cut Expectations
Investors are increasing their expectations for an early rate cut by the US Federal Reserve. Fed Chair Powell confirmed improvements in June quarter data in his testimony to Congress, but emphasized that more data on inflation is needed.
Powell said the US economy was no longer “overheated” and did not give a specific date for interest rate cuts. Markets are assessing the probability of the Fed cutting interest rates in September at 73%.
Exchange Rate Situation
While USD/TRY continues its sideways trend just below 32.90, Euro/TRY is traded around 35.65.
