Iranian President’s helicopter tragedy triggers gold price surge
Iranian President Raisi’s tragic demise in a helicopter crash amplifies geopolitical tensions, with a surge in gold prices
The crash of the helicopter carrying Iranian President Raisi, along with considerations of a possible assassination, has heightened geopolitical tensions in the Middle East.
Gold surged to a historic high of $2440 per ounce, while in the free market, the price of a gram of gold exceeded ₺2525, nearing peak levels.
Gold prices started the new week with volatility. Bolstered by favorable economic data from the U.S. indicating an easing of inflationary pressures and a global weakening of the dollar, gold prices per ounce surpassed $2400 after a month.
Closing at $2415 on Friday, it marked a weekly gain of 2.33%. This week, gold prices surged further, reaching unprecedented levels amid escalating geopolitical risks.
The world focuses on Iran
All eyes are on Iran following the tragic incident involving the helicopter carrying Iranian President Raisi.
Iran officially confirmed on Monday that President Raisi, along with Foreign Minister Hossein Amir-Abdollahian and others, tragically died after their helicopter crashed in a forested area of East Azerbaijan province.
The crash occurred around 4:00 p.m. local time on Sunday. Due to adverse weather conditions, Iran requested assistance from Türkiye, which was instrumental in locating the wreckage using its domestically produced UAV, Akinci.
Despite efforts, Iranian authorities faced challenges in locating the wreckage for several hours.
Meanwhile, Israel’s military actions in Gaza continue unabated, with multiple areas, including Rafah, subjected to bombardment over the weekend.
Additionally, the Houthis in Yemen have announced plans to target all ships heading to Israel.
Gold prices on May 20
Gold prices on May 20 reflected the heightened tensions and uncertainties in the market.
Having reached an all-time high of $2431 on April 12 before experiencing a decline, gold surged to a new peak of $2440 at the beginning of this week. Currently, prices are hovering around $2435 in the morning hours.
The price of a gram of gold also approached peak levels from last month, reaching ₺2529 this morning, maintaining close to ₺2525.
In the Grand Bazaar, the price of a gram of gold fluctuates between ₺2502 and ₺2551 for buying and selling, while quarter, half, and full gold coins are priced at ₺4,144, ₺8,288, and ₺16,498 respectively in jewelry stores.
Targets and expectations in gold
Market analysts are closely monitoring key indicators such as the dollar index, which currently stands at 104.45, and U.S. 10-year bond yields hovering around 4.42%.
There’s a growing anticipation of a future interest rate cut from the Fed, and experts emphasize that prevailing geopolitical risks are bolstering gold prices.
Crucial levels in gold
Key levels to watch in the gold market include $2400 as the initial support level and $2430 as a critical resistance level. Sustained trading above $2430 could potentially accelerate the upward momentum in gold prices.
Source: Newsroom
