March 22nd Market Update
Turkish Central Bank Turmoil Fuels Gold Dip
The big news this morning in precious metals is Turkey’s firing of its central bank chief. Turkey is a large buyer of gold, and this ouster pushed the dollar up and gold down. Gold is denominated in dollars, and the decline in the buying power of the Turkish lira means Turks can buy less gold than they could before. Reuters technical analyst Wang Tao indicated that gold might test support at $1,716 per ounce. As of 9 a.m. EDT, gold was sitting at $1,741.12, a drop from where it started the day.
Treasury yields have dropped, which may give gold a little support.
The AstraZeneca COVID-19 vaccine has passed clinical trials in the U.S., though there are still concerns in the E.U. Deaths worldwide went up for the first time since January.