Gold prices will continue to drop, experts say

Gold and money market expert Mehmet Ali Yıldırımtürk indicated that the concerns over the dollar appreciating against gold will continue. "The increase in the price of gold last Friday was due to the end-of-the-month contract activity and weekend risk," Yıldırımtürk said, and stressed that gold prices will continue on their downward trend. He also said economic data announcements from the U.S. will shape the trajectory of gold, and added that in Far East and Asian markets euros-to-dollars was traded at 1.093-1.095 while gold was traded at 1,080.30-1,086.10 dollars-to-ounces yesterday morning.

Yıldırımtürk underlined that these markets closed last week with euro-to-dollar rates at 1,094.5 and gold (dollars-to-ounces) at 1,083.50. "The slowdown on global economic growth pressurizes commodity and industrial metal markets as well as decreases the price of precious metals," Yıldırımtürk said, emphasizing that gold will follow its downward trend for the rest of the week, apart from minor fluctuations caused by expectations of the dollar's appreciation. The gold and money market expert said as long as gold stays below the 1,085 support level, it could initially see 1,080 and 1,077 support points, whereas if gold exceeds $1,085 per ounce, there would be short-term pivot points between 1,087 and 1,092 support points.

According to Borsa Istanbul Precious Metals and Diamonds Markets data, gold exports sharply increased in July by a remarkable 884.3 percent compared to July 2014, moving up from 1.5 tons to 14.3 tons. Thus, gold exports in July also amounted to an eight month peak. Turkey's gold exports in July increased 958.4 percent compared to last June, when the export amount totaled 1.4 tons. Between January and July, Turkey exported 25.6 tons of gold with a 49.7 percent decrease from the same period last year when the country exported 50.9 tons of gold.