Gold Falling And Lira Pushes Dollar up

Gold prices fell as investors preferred alternative safe-haven assets such as the US dollar and bonds after Turkey’s surprising decision to appoint a new central bank governor who was known to criticize high interest rates, which led to uncertainty over fiscal policy.

Gold fell in the spot market 0.5 percent to $1736.71 an ounce in Asian trading, and it had lost 0.7 percent earlier in the session. And gold fell in futures trading in the United States 0.2% to 1738.80 dollars an ounce.

Turkish President Recep Tayyip Erdogan dismissed the governor of the Central Bank, who supports tightening monetary policy, and replaced him with an opponent of these policies, on Saturday, in a surprise move that raised concerns about the impact of this on financial markets and supported the dollar as a safe-haven currency.

Dollar-denominated gold has lost safe haven flows in favor of the yen and bonds.

In terms of other precious metals, palladium rose 0.2% to $2,639.92, silver fell 2.5% to $25.60, and platinum also lost 1.3% to $1181.30.