Middle East impact on Turkey’s markets: Current status of gold, dollar, and oil

Following Iran’s launch of approximately 200 ballistic missiles at Israel and statements indicating Israel’s intent to retaliate, there has been a noticeable shift towards safe-haven assets in the markets. Here’s the latest on dollar, oil, and gold prices.

Iran’s missile attack on Israel has heightened concerns over escalating conflicts in the region, leading to increased interest in safe-haven assets globally. In Turkey, rising tensions and their potential effects are closely monitored.

Iran stated that its missile attacks on Israel would not continue unless provoked further. However, Israel and the U.S. have indicated they will retaliate.

DOLLAR STRENGTHENS

In global markets, the dollar gained significantly following Iran’s missile attacks, achieving its largest weekly gain in a week. The dollar index, which measures the dollar against six major currencies, rose by 0.5% to 101.2, marking its highest level since September 25. As of 08:50 today, it was at 101.02.

The dollar also approached a three-week high against the euro, with the euro/dollar exchange rate down by 0.04% at 1.106.

In Turkey, the dollar/TL pair began the day with a limited rise, starting at around 34.22, reflecting the increased geopolitical tension.

OIL PRICES RISE

Concerns over the potential spread of conflicts in the Middle East have pushed oil prices up due to expectations of disrupted supply. Oil prices increased by more than a dollar following the attack, as fears grew about rising tensions and potential disruptions to crude oil production.

Brent crude rose by 3.4% yesterday, and is currently trading at $74.78, which is 1.6% higher than the previous close. U.S. light crude is also up by 1.8%, trading at $71.13.

DOLLAR RISE PRESSURES GOLD

Gold prices remained stable as the strengthening dollar exerted downward pressure amid rising tensions in the Middle East. Investors are also watching upcoming U.S. economic data for insights into the economy’s status.

The spot price of gold saw an increase of more than 1% yesterday but has since dropped by 0.63%, trading at $2,646 as of 08:40 today. Meanwhile, gram gold has decreased by 0.61%, selling at 2,911 TL, with the Republic gold at 18,984 TL and quarter gold at 4,760 TL.