Turkey’s Problems with the US will be Resolved
Turkish President Tayyip Erdogan’s spokesman said Wednesday he expected problems with the United States, which helped drive the lira to record lows, to be resolved but Washington must stop trying to influence Turkey’s judiciary in a reference to the detention of Pastor Brunson for spying.
Ibrahim Kalin also told a news conference that Turkey would exercise its rights if the US does not deliver F-35 jets to Ankara.
The Turkish Lira, has rallied after hitting a record low of 7.24 Vs USD, would continue to recover, he said.
Gold futures volumes have surged on the Borsa Istanbul as the volatile currency attracts speculation and after the Lira’s dive boosted the local price of metal. The 90-day average daily volume more than doubled to 40,000 contracts, from about 17,000 in March.
During the same frame, the value of an ounce of Gold in Lira rose more than 30%.
“It definitely would make sense to own Gold now in Turkey given the depreciation of the lira,” the precious metals strategist at Mitsubishi Corp U.K. Plc, said. “This is consistent with Gold’s status as a safe haven and will likely be mirrored on the physical market with demand increasing for jewelry and Gold bars.”
Turkish trading levels are still small by global standards, with a minuet amount of metal changing hands on the bourse compared with major hubs London and New York.
Spot Gold in NY and London dropped to the lowest in about 18 months at 1,175.75 oz Wednesday.
President Erdogan, who in Y 2016 urged Turks to convert their foreign-currency savings into Lira and Gold as relations with the US started to deteriorate, said this week that they should exchange the precious Yellow metal for Lira.
Turkey is a significant source of global demand for Gold, although it lags well behind the world’s two largest buyers of the metal, China and India. Historically, the country also plays a key role as the home of the ancient Kingdom of Lydia, where the earliest known gold coinage originated in the 7th Century BC.