Gold crucial hedge against inflation: Analyst’s take on metal’s bumpy ride post-Eid

Gold prices delivered a significant surprise to investors following the Qurban Bayram, also known as Eid al-Adha. The cost of a gram of gold, trading at ₺2400 before the holiday, first surged above ₺2500 today, setting a new record, before retracting to ₺2450 amid sharp fluctuations.

Financial Analyst Islam Memis addressed the questions on investors’ minds following the volatile day in the market.

Analyst’s insights on gold’s surge

Islam Memis, a financial analyst, offered insights into the fluctuating gold prices. He highlighted that despite reaching ₺2500 today; the metal had dipped below ₺2400 before the holiday.

Memis emphasized July could mark the beginning of an upward trend, indicating a potential for further gains.

Expert advice for gold investors

Memis advised investors to seize opportunities presented by declines before the holiday, predicting a bullish trend in July. He underscored that despite recent fluctuations, gold remains a resilient investment amid global uncertainties and inflationary pressures.

Gold: Historic investment opportunity

Gold, renowned as one of the most profitable investments of all time, surprised investors over the past two trading days post-Eid.

Starting below ₺2400 before the holiday, the price of a gram of gold soared above ₺2500, showcasing a rapid appreciation of ₺100 in just two weeks. This surge correlates with a $70 increase in the price per ounce, which peaked at $2368 before encountering resistance and falling to $2321, prompting a ₺20 decline per gram.

What should gold investors do now?

With gram gold currently trading freely at ₺2500, amidst a backdrop of inflation and central banks accumulating gold reserves, uncertainty prevails in global markets. Islam Memiş advised investors to consider gold as a haven amid geopolitical tensions and fluctuating oil prices, highlighting its potential as a stabilizing asset in volatile times.

The future outlook for gold

Looking ahead, Memis predicted a continued upward trajectory for gold, suggesting potential prices ranging from ₺2600-2700 and potentially reaching ₺3000. He maintained his long-term forecast of ₺3500, emphasizing that gold remains a crucial hedge against inflation and a store of value amid increasing global demand.

Alternative investments amid high gold prices

For those unable to invest in gold at current levels, Memis recommended considering silver. Highlighting its comparative affordability with grams priced at ₺32, he pointed out that silver had outperformed gold, yielding around 40% returns compared to gold’s 20% in recent months.