Gold extended its slide on Friday morning, with the price of an ounce falling to about $4,010, its lowest level in three months, financial news site Bigpara reported. The metal has lost about 3.5% this week and more than 6% over the past month.
In Türkiye, where gold is one of the most popular ways for households to store savings, the drop pulled the price of gram gold to around 6,410 lira on the selling side, according to the report. Ounce gold was down 0.38% on the day at the time of writing.
Why prices are falling
The report linked the decline to a sell-off in technology and artificial intelligence shares, which it said has pushed some investors to sell metals and raise cash to cover losses elsewhere. Concerns that large tech companies may need to borrow more to fund heavy AI spending have added to the nervousness.
Rising oil prices are another factor. Higher energy costs raise inflation risks and strengthen expectations that the US Federal Reserve will keep interest rates high for longer, which tends to weigh on gold because it pays no interest. Brent crude rose above $110 a barrel on Friday.
Some market participants see the dip towards $4,000 as a buying opportunity, the report said, without naming them.
What to watch
Investors are now looking to the Fed meeting on 27-28 October and US personal consumption expenditure (PCE) inflation data for September, due on 29 October.
For people in Türkiye, the lira price of gold depends both on the global ounce price and on the dollar-lira exchange rate. The central bank cut its policy rate to 36% this week, and Borsa Istanbul fell more than 3% on the day of the cut as gold first dropped below $4,100.
Savers who moved money out of investment funds caught up in the recent probe may also be weighing gold as an alternative; parliament this week passed a law allowing interim payouts of up to 1 million lira from funds in liquidation. For broader context on prices and budgets, see our cost of living in Türkiye guide.
Sources
Photo: Jingming Pan / Unsplash License, via Unsplash
