Gold and Silver Prices Rise in Volatile Recovery
Gold and Silver Prices Rebound: Current Market Update
After a sharp correction from last week's record highs, precious metals found support on Tuesday, with both gold and silver prices climbing higher. This recovery partially offsets the significant losses triggered by profit-taking at the beginning of the week.
Gold Price Dynamics: A Volatile Recovery
Gold, which had been declining since Friday amid a broad market correction, reversed course on Tuesday. The price initially rose to $4,856 per ounce before settling around $4,820 per ounce.
Domestic Market Update: In Turkey, the price of gold per gram followed the global trend, rising to 6,789 TL before correcting to approximately 6,737 TL.
This movement comes after a 13% surge in January was abruptly halted, pulling prices back to early-January levels.
Silver Attempts to Stabilize
Silver, which experienced an even more dramatic correction from its peak of $119 per ounce, is currently trading around $83 per ounce. The metal remains far from its recent high, underscoring the extreme volatility in the sector.
What Drove the Record Highs?
Last week's historic rally was fueled by a confluence of factors:
- A significant weakening of the US Dollar Index.
- Escalating geopolitical tensions, particularly between the US and Iran.
- Market anxiety over the potential resumption of tariff wars under US leadership.
During this surge, gold per gram in Turkey reached 7,811 TL.
Profit-Taking and External Pressure
The subsequent sell-off was a classic case of profit-taking after a parabolic rise. Additional downward pressure emerged from the appointment of Kevin Warsh to the Federal Reserve. Markets perceive him as a predictable figure, which slightly diminished immediate demand for safe-haven assets like gold.
Market Focus: US Government and Data
All eyes are now on Washington. The US Department of Labor has already canceled this Friday's January employment report due to the partial government shutdown.
Key Development: The House of Representatives' expected vote on the budget could prevent a prolonged data blackout. Analysts agree that the future trajectory of precious metals hinges on US fiscal decisions, the dollar's strength, and unfolding geopolitical events.
Analyst Outlook: While Tuesday's rebound is a positive sign, the market remains in a reactive state, indicating that high volatility is likely to continue in the near term.
