Week Overview 23-27 December 2024;

On Wednesday, the FED reduced interest rates by 0.25 basis points to 4.50%. However, the FED‘s reduced inflation expectations and interest rate cut forecasts for 2025 increased the strength of the Dollar and caused sales in precious metals. On Friday, when the Core Personal Consumption Expenditures Price Index (PCE) data was below expectations, the demand for precious metals increased again.

This week markets are starting to enter the Christmas holidays, volumes may decrease while volatility may increase. The critical Interest Rate Decision of the Central Bank of Turkey will be announced on Thursday and expectations are for a 150-200 basis point reduction. The expectation of continuity of interest rate cuts may have a negative impact on the TL, which may increase the demand for precious metals on a TL basis again.

Additionally, regarding geopolitical developments, Israel‘s operation in Gaza draws attention and the difference between the free market in Turkey and the global market on an ounce basis was around $42.