Gold Price Decline: What Should Investors Do?

Historical Drop in Gold Prices

In recent days, gold prices have experienced their worst daily session since 2020, recording a drop of approximately 5%. However, with the weakening of the dollar and the sharp declines seen in previous sessions, investors have observed a slight recovery in prices supported by opportunistic buying. Spot gold dipped below $4,000 and showed a slight increase, while it fell back to $4,057 at 4:00 PM with a nearly 1% decline during the day. U.S. gold futures continue to trade at $4,043, with a 1.6% decrease. In the Turkish market, the price of gold per gram is hovering around 5,444 lira.

Expectations for Increase and Risks

Investors are eagerly awaiting U.S. inflation data to gain more insight into the Fed's interest rate reduction policies. The September U.S. Consumer Price Index (CPI) data will be released this week, following delays due to the federal government shutdown.

Matt Simpson, a senior analyst at StoneX, commented on the decline in gold prices, stating, “The increase in trade tensions between the U.S. and China has both triggered momentum in gold and led to the pullback.” He further noted, “This situation has necessitated a technical repositioning in the market following a long-term movement above $4,000. The declines are still creating buying opportunities, and I believe we have seen the worst of the daily fluctuations.”

Important Trade Meetings

Statements from U.S. President Donald Trump are drawing attention. Trump announced that he will meet with Chinese President Xi Jinping in South Korea next week and expects to sign a fair trade agreement during this meeting. The success of the trade agreement could affect the trajectory of gold prices.

In conclusion, the current market conditions and potential fluctuations should be taken into account by gold investors. The data and trade agreements to be announced in the coming days will have a decisive impact on the direction of gold.