Is there a link between the decline of the Turkish lira and the decline of gold? Via Reuters


© Reuters. Gold is dropping, and the fall in the lira pushes the dollar up

(Reuters) – They fell on Monday as investors preferred alternative safe-haven assets like the US dollar and bonds after a surprising decision to appoint a new central bank governor known for criticizing high interest rates, leading to uncertainty over fiscal policy.

In the spot market, it fell 0.5 percent to $ 1736.71 an ounce by 0600 GMT, and had lost 0.7 percent earlier in the session. And gold fell in futures trading in the United States 0.2 percent to 1738.80 dollars an ounce.

Turkish President Recep Tayyip Erdogan sacked the governor of the Central Bank, who supports tightening monetary policy, and replaced him with an opponent of these policies, on Saturday, in a surprise move that raised concerns about the impact of this on financial markets and supported the dollar as a safe-haven currency.

Dollar-denominated gold has lost safe haven flows in favor of the yen and bonds.

In terms of other precious metals, it rose 0.2 percent to $ 2,639.92, and fell 2.5 percent to $ 25.60, as well as platinum losing 1.3 percent to $ 1181.30.

(Prepared by Hala Qandil for the Arabic Newsletter – Edited by Moataz Muhammad)

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