TÜRKİYE GAZETETESİ/Ö. Faruk Bingöl- The accelerated loss of value in gold, an indispensable investment instrument for the Turkish people, has also hit savings in the Individual Pension System (BES). The share of "Precious Metals" (gold and silver) funds, which have had the highest weight in BES from the beginning, stood at 42.34% as of May 14.
In the intervening one-month period (as of June 11), this share declined to 39.82%. Both the decline in gold prices and some investors starting to reduce their gold holdings contributed to this fall. IN ONE MONTH, 130 BILLION LIRA! On the other hand, during the same period, a significant decrease was observed in the total amount of savings in the BES pool, in parallel with the drop in gold prices.
The savings in the BES pool, which stood at 2.5 trillion TL on May 14, fell to 2.37 trillion lira on June 11. Thus, the loss of value in gold reduced the savings in the BES pool by 130 billion lira in the last month.
MARKETS FOCUS ON FED In an analysis by Troy Kıymetli Madenler, which noted that markets are reading geopolitical tension through oil prices, energy costs, inflation and the possibility of tighter monetary policy, it was stated: "The deterioration in inflation expectations weakens the possibility of Fed rate cuts, and even leads to discussion in the market about the possibility of renewed rate hikes this year."
"In this equation, gold struggles to gain permanent upward momentum despite the war risk," the analysis stated, indicating that the decline in gold stems not only from increased selling but also from weakening buyer appetite. US CPI AT 4.2% This week, the inflation data announced in the US rose to 4.2% on an annual basis.
Although a CPI figure in line with expectations was announced, the high levels that inflation has reached supported a higher-yielding and stronger dollar equation. Non-yielding and dollar-priced gold also remained under selling pressure. Attention has turned to the Fed's interest rate decision on June 17 next week.
According to the CME FedWatch survey, the probability of the Fed keeping interest rates unchanged in the 3.50-3.75% range on Wednesday is priced at a high 97.4%.
GOLD DECLINES 9.3% The ounce price of gold fell to $4,024 this week, seeing its lowest levels in the last seven months. Then, with subsequent reaction buying, the ounce completed the week at $4,218. Over the last month, the loss of value in ounce gold was -9.3%.
