Talking nonsense all the time as a politic leader, President Trump is after something that we all obviously know about: Not dropping the ball until next presidential elections.
As the reflections of the innocent people slain in the United States still continue, Trump suddenly escalates trade war with China. While, on one hand, America is teetering on the brink of a civil war, on the other hand, the World is getting drawn into a major spectacle before 2020 US Presidential Elections.
Sharp depreciation in the Yuan, dragging US stocks after shock sales have reminded us of the terrifying scenarios we were trying to ignore. The fact that Trump agreed with Turkey’s S-400 purchase has seemed very suspicious to me from the very beginning. Now, it has become obvious that President Trump was actually avoiding fighting on multiple fronts before global conflicts start in different parts of the world.
“Gold emerges as victor in this chaos…”
As you may remember, recently released inflation rates didn’t bring too much of a negative impact on markets. However, be reminded that natural gas and other price hikes will be added to August Inflation as well. Despite this setback, Turkey economy still tries to follow the prescribed policies.
News from around the world, however, isn’t very cheering at all. Banking Regulation and Supervision Agency (BDDK/BRSA) and Savings Deposit Insurance Fund (TMSF/SDIF)’s measures taken against cascading turbulence in foreign exchange markets do not go unnoticed either. Market calm established by recent CBRT and Fed decisions is sadly about to end.
Sharp decline in oil and swift rise in Gold is especially worthy of notice. Whenever people’s confidence in Dollar and Euro starts to fall simultaneously, it is time for the Gold to begin appreciating. However, it can be seen that Gold has been rising over the past year, and continuing to gain momentum since May 2019. Although USD to TRY Exchange Rate has been dropping since last month, Gold Price per Gram in Turkish lira keeps going up in domestic markets as Gold rapidly appreciates in international markets.
Today, exactly one year after since Gold Price per Gram hit TRY 251 when Turkish Lira was sharply appreciating, Gold Price per Gram stands at TRY 262. After all, I think Turkish gold investors too can get a lucky break from time to time.