Signals that the Federal Reserve will continue aggressive rate hikes to contain historically high inflation have rattled the gold market. On the other hand, the dollar index (DXY) has climbed to historic highs. In this environment, there was a pullback in gram gold prices priced in TL. Market expert İslam Memiş commented on the latest developments and shared his predictions.
“All other investment instruments are cheap against the dollar”
Islam Memiş covers the latest developments in the market on his personal Youtube channel. He talks about developments in the global economy and evaluates their impact on ounce and gram gold prices. Meanwhile, the yellow metal closed Friday with a loss of 1.64% at $1,643. With this cryptocoin.comAs you follow, the dollar has climbed to 20-year highs. However, the rise in Dollar/TRY was limited due to market interventions. As a result, gram gold prices fell.
Even though the dollar is gaining strength, Memiş is in favor of staying away from the dollar. It prefers Euros and Strelines instead of dollars. Reminding that DXY is at the peak of 20 years, Memiş therefore stays away from the dollar. However, it finds all other investment instruments cheap against the dollar. “Think of the dollar at a 20-year high and an ounce at a 13-month low,” says the expert. Afterwards, Memiş makes the following assessment regarding gram gold:
Gram gold appears at the level of 980, 998-1,001 TL on the screens. I would like to point out to those who believe the numbers on the screens and say that gold has fallen… This week, I will follow the band range of 970 to 1,020 TL. If there are sharp decreases in the USD/TL rate, it is possible to drop below 970. However, such a possibility is currently very slim.
“The dollar is already at its peak, I prefer gold or silver…”
Islam Memiş also talks about geopolitical risks. “Even though the Fed’s interest rate decision was talked about a lot, Putin’s statement was very, very important,” Memiş says. He estimates that the Fed will increase by 50 bps in the last quarter of the year, and then by 25 bps. After that, he says, after the Fed rate decision, gold is stuck at $1,660-1,680. He predicts that if this level is not broken, a recovery to $1,700 is possible.
On the other hand, gold closed at $1,643 on Friday. Therefore, the expert’s upward forecast seems to be invalid for now. According to the expert, the Fed’s lower interest rate hike will bring the decline in DXY to the agenda. Accordingly, he sees it possible to retreat to 104-105 in DXY. Therefore, he says, there will probably be activity in ounces of gold and ounces of silver. Saying “We need to start preparing for October”, Memiş shares the following predictions and recommendations:
‘I have dollars, what should I do?’ questions are coming. I don’t like the dollar. The dollar is at a 20-year high, the euro is at a 20-year low. Do you buy the top one or the bottom one? You have to decide this. I prefer trading over parity. Therefore, those who have dollars can invest 50-50% in gold and silver with it, since the ounce price of gold is low… I buy my gold, I put it in KKM, I get my monthly income. My gold is already gold. I will not lose anyway.
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