While leaving the critical week behind; geopolitical developments in particular continue to increase without slowing down. After the explosion of an unmanned aerial vehicle near the home of Israeli Prime Minister Benjamin Netanyahu, The Israeli military launched a series of new air strikes across Lebanon, including the suburbs of Beirut, after Hezbollah announced the targeting of the offices of its al-Kard al-Hassan financial institution. We continue to observe rapid purchases in precious metals caused by geopolitical developments increasing the risk of regional war. In the data economy; Last week; the critical interest rate decision was announced from Turkey, while the report was more important for the markets while the interest rates were not changed. In the detail of the report, the board underlined that inflation expectations and pricing behaviors continue to be risk factors for the disinflation process, slightly increasing the odds of interest reductions in the fight against inflation.
ECB main refinancing interest from the European Region was reduced from 3.65 percent to 3.40 percent. The European Central Bank (AMB) reduced interest in October after September in line with market expectations. This year, the bank cut interest rates for the third time on the grounds that the rapid decline in inflation supports the region's booming economy.
On the American front, it is one of the indicators of employment markets; 'Applications to Benefit from Unemployment Rights' was announced as 241,000 within the expectations. The data is quite high than a month ago, but there is some decline from 254,000 compared to last week. We may be observing the effects of the hurricane in particular. It will be useful to follow as the employment market will directly affect the decision-making power of the FED.
On Friday, however, the figures for Gross Domestic Hasla from China were announced. The data was announced as 4.6% within expectations. The prospect of recovery of the economy, along with stimulus packages and interest cuts in China, could make silver and copper prices shine again in the precious metals market.
As of this week, especially Thursday will be the most active day of the markets in terms of data economy. The number of applications for Unemployment Rights from America will be announced on Thursday. Especially in the employment market, there will be a data that we will closely follow the possibility of deterioration. As disruption in employment in the United States will support interest cuts, we can expect positive weather to continue in precious metals if Unemployment Rights Application data increases. On the other hand, Service Purchasing Managers Index (PMI) figures from the US will be the most critical data of the week. Expectations are expected to be announced around 55. In particular, PMI data feed the country's economy and growth figures. If we remember that the Fed is in the process of lowering interest rates, we can talk about the narrowing agenda in the American economy again.
Technical summary; starting the week, ounce gold started from the $2720 region, ounce silver started the week around $33.65. On the other hand, the eyes of precious metals will continue to be in the Middle East and in the moves of the FED. In particular, if the likelihood of the war being regional increases, we can observe the increase in demand for precious metals that are considered as safe ports. In addition, demand increase from Turkey under ounce continues to be observed. The increase in domestic demand, especially due to ithat quota, continues to lead to price differences. At the beginning of the week, the difference between the global markets on an ounce basis and the Turkish market started at around $100. Especially in the Middle East, we can expect the current deficit to increase even more because the possibility of war will increase energy costs, in which case we can expect the quota to continue if we consider that the quota is caused by the current deficit.
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