Gold price retreats amidst profit-taking

Stock market and economic data

In today's market activity, the Nikkei 225 index of Japan surged for the seventh consecutive session of growth for the index, the positive momentum mirrors the strong performance on Wall Street as well as favorable decisions made by the Fed and the Bank of Japan earlier.

As for the eurozone, the economic data today exhibited a clear divergence, with services showing improvement while manufacturing remains stagnant, bordering on recession. Notably, Germany's manufacturing sector faces significant challenges, contributing to a potential technical recession as the GDP contracts by -0.3%.

Gold

After reaching a record high earlier in the day, the price of gold retreated slightly, hovering above the $2,200. Meanwhile, silver prices surged toward an 11-month high as the US Dollar weakened. Market sentiment remains bullish, supported by expectations of continued Fed rate cuts.

Currency market

The CBRT announced a surprising 500 basis points rate hike, pushing the one-week repo rate to 50.00%. This unexpected decision led to gains in the Turkish lira against major currencies, with USDTRY and EURTRY both experiencing notable declines.

Market attention today is particularly drawn to developments in the United States, as investors await jobless claims and PMI report. An improved economic outlook could influence trading dynamics, potentially limiting downside pressure on the US Dollar.