Gold Started the New Week on a Positive Note in Turkey, With Gram Gold Trading at 6,670 Liras on Monday Morning

The precious metal had closed Friday at 6,658 liras, up 2.56% from the previous close, following a rise in the ounce price. By 09:20 local time, gram gold was up 0.2% from the previous close. Quarter gold was selling at 10,944 liras and Republic gold at 43,577 liras.

The ounce price of gold was trading at $4,345, up 0.1%. Weakening expectations of U.S. Federal Reserve interest rate hikes continue to support gold's positive trend. Expectations that the Fed may not raise rates as much as the market prices and could adopt a more dovish stance if inflation data slows have boosted risk appetite.

Last week, U.S. non-farm payrolls fell by 23,000 in July, against market expectations of an 85,000 increase. Private sector employment rose by 44,000 in July, also below estimates. Following the data, expectations of Fed rate hikes by year-end weakened in money markets.

The probability of the bank keeping its policy stance unchanged at its September meeting rose to 53%, while a possible rate hike is priced at 71% for October and 83% for December. On the geopolitical front, markets started the week with low military tension. The lack of a deal to ensure lasting calm and stability in the Middle East means geopolitical risks continue to affect asset prices. Analysts said domestic industrial production data and the Eurozone Sentix investor confidence index would be followed today.