27.06.2025 17:30
The Israel-Iran ceasefire, along with the US trade agreements and core PCE data exceeding expectations, led to a sharp decline in gold prices. The price of gold per ounce dropped to $3,255, marking the lowest level in the last month, while the price of gold per gram fell to 4,175 TL, the lowest in the last 2.5 weeks. As expectations for a Fed interest rate cut weakened, the weekly decline in gold per ounce exceeded 3%.
The gold prices accelerated their decline towards the end of the week. The decrease in geopolitical tensions, economic data, and the weakening expectations of interest rate cuts by the Federal Reserve (FED) increased selling pressure in the market.
DEMAND FOR GOLD HAS DECREASED
The ceasefire between Israel and Iran and the progress made by the U.S. in trade agreements with China have reduced the demand for gold, which is seen as a safe haven, as risk appetite in the market has increased.
CRITICAL DATA RELEASED
Another factor accelerating the decline was the U.S. Core Personal Consumption Expenditures (PCE) Price Index for May. The data, closely monitored by the FED in terms of its interest rate policy, increased by 0.2% on a monthly basis, exceeding expectations. This situation weakened the likelihood of an interest rate cut by the FED.
With all these developments:
- Gold per ounce fell to $3,255, reaching the lowest level in the last month.
- Gold per gram dropped to 4,175 TL, testing the lowest level in the last 2.5 weeks.
- The total value loss in gold per ounce exceeded 3% on a weekly basis.
EYES ON THE FED MEETING
Analysts state that gold prices will continue to move data-driven in the short term, and especially the FED's meeting in July will be decisive for the direction.