Gram gold reached a historic peak, and queues formed in front of jewelers.

The gold market has been in a whirlwind lately. Gram gold has broken a record high, reaching 6,000 lira. Quarter-gold coins, meanwhile, surpassed the 10,000 lira mark for the first time in the Grand Bazaar. With demand rising, long lines formed in front of jewelers across Türkiye, and some shops temporarily suspended sales of quarter, half, and Republic gold coins.

Gold tested $4,3081 per ounce before closing around $4,220. Geopolitical risks, the US-China trade war, and record gold purchases by central banks are fueling the sharp rise. KCM Trade Chief Market Analyst Tim Waterer stated that gold's potential to reach $4,500 is "not far off."

ECONOMISTS DIVIDED

The rise in gold prices has divided investors. While some analysts predict the rally will continue, others warn of potential short-term profit-taking. Berk Dinçtürk, Istanbul Portfolio Fund and Portfolio Manager, commented, "America is deliberately paving the way for gold. Its rise is based on the gold price in its own reserves. However, this could come to an end."

Rising demand, coupled with a production disruption at the Istanbul Gold Refinery, has caused market congestion. Some jewelers are selling only bracelets and jewelry, while halting sales of quarter, half, and Republic gold coins. Similar incidents have also been seen in Australia, Japan, Vietnam, and Hong Kong.

Since the beginning of the year, central banks have continued to purchase gold, increasing their reserves. The Central Bank of the Republic of Turkey (CBRT)'s 617-ton gold reserves have surpassed $84 billion, significantly contributing to Türkiye's foreign exchange reserves.

The gold market remains a safe haven as long as global uncertainties and geopolitical risks persist. However, some experts warn investors that rapid gains may be followed by short-term pullbacks. Rising prices and increasing demand are reshaping the gold trade both in Türkiye and globally.