Some expert views about movement of gold and dollars against Turkish lira

The rise in gold prices continued on 5 August 2020 with new records. While gold rose to US$ 2,040 an ounce, gram gold rose to $ 460 (a gram). According to experts, concerns regarding the second wave in the corona outbreak, U.S.-China tensions, monetary support packages announced against the outbreak, the weakening dollar as well as the expectations the explosion in Lebanon will create a strategic tension in that region, caused gold to gain more strength.

The dollar rose against the dollar as swaps interest rates normalized today after yesterday’s astronomical levels. The dollar’s value gain was also one of the factors driving up the price of gold.

The rise in gold prices continued unabated today. Gram of gold rose 2.9 per cent to above $ 460 level. Ounce of gold continues its 2000 dollars level which it has reached for the first time in history. Ounce of gold fell to $ 2009 level during the day and rose to the $ 2.040 band, later in the day again.

The most significant cause in the long-standing rise is undoubtedly thought to be the corona outbreak. The fear of a second wave following of normalization steps has led investors around the world to gold, which is seen as a safe haven.

In addition to the fear of the second wave, the liquidity steps taken by central banks to mitigate the effects of the outbreak and the dollar which has weakened recently, are the main reasons for gold’s rise.

Also, it is observed that the escalation of trade war tensions between the US and China also supports gold prices.