Gold prices surge to near record highs amid geopolitical tensions

The price of a gram of gold in the free market approached peak levels at ₺2355 on April 3.

Meanwhile, the price of an ounce of gold broke records at $2288.

Supported by geopolitical risks, the continued rise in gold prices suggests that if the uptrend persists, the market might see $3325 for an ounce and ₺ $2400 for a gram.

Eyes are now on U.S. employment data this week whereas experts advise caution toward the $2260 support level in case of profit-taking.

Despite the sideways movement in exchange rates in domestic markets, the rise in the price of a gram of gold stands out.

On April 2nd evening, the globally traded ounce of gold approached $2300. With the escalation of geopolitical risks, gold has recently accelerated its rise, hovering close to record levels.

Amid escalating tensions between Israel and Iran in the Middle East, the Iranian government announced a "response" following the bombing of its consulate in Syria.

On April 3, the gram gold, which closed near ₺ 2330 levels last night, started trading around ₺ 2355.

Thus, gram gold trades with a 1% premium compared to yesterday's closing.

While the gram price in the Grand Bazaar stands at ₺ 2475 for selling, quarter gold is sold at ₺ 4,230 in the morning hours, half gold at ₺ 8,287, and total gold at ₺16,500.

This morning, the all-time high of $2288 for an ounce of gold primarily supported the gram of gold domestically.

Expectations for gold prices 

While the weekly increase in the ounce of gold is 4.90% and the one-month increase is 9.75%, as of April 3rd, the 5-day moving average stood at $2260 and the 22-day average at $2200.

Analysts emphasize the importance of paying attention to the $2260 support level in potential profit-taking scenarios.

They suggest that given the increasing risks and weak U.S. data, upward momentum could continue, leading to potential increases up to $2325.

With current conditions, retracements remain limited; ₺ 2300 might now be an essential support level for a gram of gold, and if the strong outlook in ounces continues, momentum toward ₺2400 for a gram could persist.

Attention to these data for gold prices

This week is employment week in the U.S.

Today, ADP Private Sector Employment figures will be released. On Friday, more crucial non-farm payroll figures for the Fed's interest rate cut process will be seen.

Data indicating a cooling in the labor market could also signal a moderation in inflationary pressures, thus easing the Fed's hand on interest rate cuts.

Consequently, relaxation in the dollar index, U.S. treasuries, and continued upward movement in ounces could be observed.