Gold and silver markets face volatility amid hawkish Fed signals

Global gold and silver markets are experiencing significant volatility driven by Federal Reserve policy signals and macroeconomic uncertainty. While UBS analysts have maintained a long-term bullish outlook for commodities—setting ambitious gold targets reaching up to $5,200 per ounce by mid-2027 due to electrification, AI infrastructure demand, and central bank buying—recent price action has been sharply downward.

Following the Jackson Hole symposium, Federal Reserve Chair Kevin Warsh delivered hawkish remarks, noting that recent inflation data does not show meaningful improvement in underlying trends. This has shifted market expectations, with the probability of a September interest rate hike rising to approximately 57.5%. Consequently, gold prices saw a sharp decline, with spot prices dropping below $4,600 and even testing $4,455 per ounce in some sessions.

In Turkey, the domestic gold market is closely tracking these global shifts. Gram gold prices have fluctuated around the 7,000–7,150 TL range. Experts suggest that high public debt and inflation continue to drive household demand for gold as a safe-haven asset to preserve purchasing power despite the recent price corrections.