US-Iran Tensions and Fed Uncertainty Dragging Down Gold Prices; Analysts Give Recovery Timeframe

Gold and silver prices continued their decline due to renewed escalation in tensions between the US and Iran and deepening uncertainty over the Federal Reserve's interest rate policy. According to a report relayed by Cumhuriyet, inflation and interest rate expectations are the main drivers of price movements in global markets.

The Federal Reserve's reluctance to signal its interest rate decisions is keeping investor demand for gold under pressure in the near term. Meanwhile, developments in US-Iran nuclear negotiations are causing geopolitical risk premiums to fluctuate.

Analysts emphasize that markets are waiting for either a concrete signal from the Fed for interest rate cuts or a marked reduction in geopolitical tensions before recovering. For Turkish investors, the dual impact of exchange rates and global gold prices is making domestic gram gold prices particularly volatile.