Local gold market distortions persist even as gold prices recede from highs

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“In Türkiye, it's a cherished tradition to bestow gold upon newlyweds, and with the summer wedding season fast approaching, our demand for this precious metal is soaring,” Turkish citizen Faruk Mutlu told the news agency. Mutlu said he was in Istanbul’s gold market to convert all of his savings to bullion, which unlike the country’s beleaguered lira, he considers “always valuable.”

Tugsavrol underlined just how dramatic the price appreciation has been in the country. “Before the conflict, one gram of gold was hovering around the 2,500-Turkish-lira mark,” he said. “After the escalation, it surged to 2,630 liras and even began testing the 2,650 levels." “The fear index has started to exert its influence, especially after Iran's retaliatory measures against Israel,” Tufan said. “This uptick suggests that investors are growing increasingly uneasy in financial markets, with concerns that the conflict between Israel and Iran could potentially escalate further.”

On Thursday, the State Bank of Vietnam was forced to cancel its second gold bar auction this week after only one business registered to participate in the auction. The central bank invited businesses to join three auctions this week, but two of them have been canceled due to low participation.

 

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