14.05.2025 09:42
The mutual reduction of customs tariffs between the USA and China, the possibility of a ceasefire between Russia and Ukraine, and finally, the fact that the inflation figures in the USA came in below expectations have led to a decrease in gold prices. The price of gold per ounce stabilized at 3,233 Turkish lira after a 1.3% drop.
The trade war between the US and China, which keeps the risk perception high in global markets, has softened with a temporary truce, and the demand for gold, seen as a safe haven by investors, has started to decline. The parties agreed to reduce mutual tariffs for 90 days. This development has accelerated the ongoing decline in the price of gold per ounce by reducing the recently escalating geopolitical tensions.
TEMPORARY CEASEFIRE IN TRADE RELAXES MARKETS
The high tariffs announced by US President Donald Trump in April were reshaped as a result of negotiations that began with China. With the agreement of the parties, the taxes imposed by the US on China were reduced from 145% to 30%, while the taxes imposed by China on the US were reduced from 125% to 10%. It was reported that this temporary arrangement would be valid for 90 days.
Trump's statements suggesting that a permanent agreement could be reached after 90 days were perceived by the markets as an optimistic step. This situation led to a decrease in the demand for gold as a safe haven due to the reduction of geopolitical risks.
FED'S INTEREST RATE POLICY AND INFLATION DATA INCREASED PRESSURE ON GOLD
Another factor supporting the decline in gold prices was the messages regarding the interest rate policy of the US Federal Reserve (Fed). While the Fed announced last week that it would not change interest rates, Chairman Jerome Powell stated that the "wait-and-see" strategy would continue. This cautious stance lowered expectations for interest rate hikes in the markets.
Additionally, the US inflation data released yesterday drew attention. The annual inflation remaining below expectations at 2.3% indicated that inflationary pressures that could support gold prices were weak. Following these developments, the downward trend in the price of gold per ounce continued.
HERE ARE THE CURRENT GOLD PRICES
The price of gold per ounce, which broke records at around 3500 lira in April, entered a downward trend yesterday with the US inflation data being announced below expectations. As of 09:30 this morning, the price of gold per ounce has dropped to 3233 dollars.
The price of gram gold has also decreased to 4031 TL.