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Gold and currency markets in Türkiye were thrown into turmoil on Thursday after Israel and Hamas approved the first phase of the Gaza Peace Plan, prompting sharp price swings and forcing jewelers in the Grand Bazaar and beyond to suspend sales.
Gold and currency markets expert Mehmet Ali Yildirimturk said many jewelers had halted trading due to the unprecedented volatility in prices, according to a report by Turkish media outlet Türkiye daily.
“This is the first time I have experienced something like this since 1974,” Yildirimturk said, noting that the buying–selling gap in the Grand Bazaar has widened to as much as 500 liras ($11) per gram in favor of sellers.
Spot gold, which reached an all-time high of $4,059 per ounce during Wednesday’s session, fell as low as $4,000 before hovering near $4,019 by 6:00 a.m. Türkiye time—down 0.6% on the day.
A gram of gold, which hit a record of ₺5,443 ($130) on Wednesday, started Thursday at ₺5,390 ($129) and briefly rose to 5,500 ($131) in early trading.
The physical sales price later stood at 5,770 liras, while quarter gold was selling for ₺9,405.
Analysts attributed the correction to easing geopolitical risks after U.S. President Donald Trump announced late Wednesday that Israel and Hamas had agreed to the first phase of a U.S.-proposed peace plan.
“The positive flow of news from the Middle East reduced demand for safe-haven assets,” analysts said.
The near-instantaneous fluctuations in Türkiye’s gold market have led many jewelers to suspend sales by the gram, a rare move even during past crises.
Yildirimturk said uncertainty in global markets, coupled with local speculation, has widened the price gap and created confusion for both buyers and sellers.
Oil prices also declined amid the easing geopolitical tensions.
Brent crude dropped 0.6% in early trading to $65.85 per barrel before recovering slightly to $66.25.
Türkiye’s benchmark BIST 100 index closed Wednesday at 10,756.27 points, down 0.53% from the previous session.
The index opened at 10,787.48 points and fluctuated between 10,729.88 and 10,907.31 during the day.
Sixty-six sub-indices declined, while 33 recorded gains. Daily trading volume reached ₺136.1 billion ($3.26 billion), and the market capitalization stood at ₺9.98 trillion ($239.9 billion).
As of 6:20 p.m. local time (1520 GMT), the USD/TRY exchange rate stood at 41.7145, the euro/lira rate at 48.4870, and the British pound at 55.9730.
The 20-point Gaza Peace Plan, first unveiled by Trump on Sept. 29, calls for the release of all Israeli captives in exchange for Palestinian prisoners, a permanent ceasefire, the disarmament of Hamas, and the reconstruction of Gaza.
Since October 2023, Israeli bombardments have killed nearly 67,200 Palestinians in the enclave, most of them women and children.
The destruction has left much of Gaza uninhabitable, with widespread starvation and disease reported by the United Nations.
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