10.06.2026 18:01
Gold prices declined as US-Iran tensions and rising oil prices fueled inflation and interest rate concerns. While gram and ounce gold saw a decrease, Citi lowered its short-term gold target and issued a downside risk warning.
The renewed tension between the USA and Iran increases volatility in global markets, while concerns that the rise in oil prices could heighten inflationary pressure have also impacted the gold market. As investors assess that the increased inflation risk could lead the US Federal Reserve (Fed) to move toward interest rate hikes, selling pressure on gold prices has accelerated.
Yesterday, gram gold, which lost value in parallel with the decline in spot gold, ended the day at 6,317 lira. Starting the new day with a decline, gram gold is trading at 6,245 lira. Quarter gold is sold at 10,390 lira, and Republic gold at 41,370 lira. In international markets, the spot gold price also fell by 1.2 percent to 4,210 dollars.
GEOPOLITICAL RISKS SHAKE MARKETS
The re-escalation of tensions between the USA and Iran raises risk perception in global markets while making it difficult for investors to find direction. The potential effects of rising oil prices on inflation are reshaping expectations regarding central banks' monetary policies.
NOTABLE FORECAST FROM MAJOR BANK
A striking assessment came from US-based investment bank Citi for gold, which has entered a correction process after historical peaks. In its latest report, the bank highlighted geopolitical risks and predicted that gold prices could experience a decline of up to 20 percent in the coming period. Maintaining its cautious stance on gold, Citi also revised its short-term spot gold target downward. Accordingly, the bank lowered its 0-3 month spot gold target price from 4,300 dollars to 4,000 dollars.
INVESTORS ENTER WAIT-AND-SEE MODE
Global investors are reportedly steering clear of risky assets to seek clearer signals regarding central banks' interest rate policies. As a result, volatile and weak trends stand out in stock markets, commodity markets, and cryptocurrencies, while an increase in short-term and cautious positioning is observed in the markets. According to experts, volatility in global markets is expected to remain high for the rest of the year, and investors are likely to continue acting cautiously.