ISTANBUL, Sept. 10 (Xinhua) -- For many in Türkiye, checking gold prices has become a daily routine -- and with good reason: the precious metal has soared nearly 62 percent since January, with a gram hitting 4,839 Turkish liras (117 U.S. dollars) and quarter gold coins topping 8,000 liras this week amid mounting economic uncertainty.
The surge is changing traditional social practices, said Istanbul resident Serpil Yildiz. "In Türkiye, giving gold at weddings has always been an act of solidarity, but now some people -- particularly in rural areas -- are asking for the gold they once gifted to be returned. It may sound strange, but it is becoming a reality," she said.
Yildiz noted that the gold she purchased on Aug. 1 for about 127,500 liras is now worth nearly 150,000 liras. "This shows just how fast prices are escalating," she said.
In Istanbul's Grand Bazaar, gold trader Resat Yilmaz told Xinhua that demand for jewelry for personal use has dropped sharply. "With the price of gold per gram rising so rapidly, even the smallest jewelry piece is now out of reach for many. Demand has shifted toward investment gold -- bars and coins," he said.
According to Yilmaz, the trend is closely tied to Türkiye's broader economic challenges. "There is a major contraction in the economy. We have no production-based policies and remain heavily dependent on imports across multiple sectors," he said. "Hot money inflows have not materialized, and foreign capital outflows have accelerated amid domestic economic and political challenges."
Annual inflation remains stubbornly high at 32.95 percent in August, and the Turkish lira has continued to weaken, trading around 41.28 against the dollar on Wednesday.
Market analyst Islam Memis warned that global factors could further push prices higher, referencing the possibility of a rate reduction by the U.S. Federal Reserve.
"Crises in the Middle East and the Caucasus could seriously impact gold prices. The world has not yet priced in a third world war scenario, but if a geopolitical explosion occurs, we could see historic highs in gold per gram," he told Milliyet daily, a Turkish newspaper published in Istanbul. ■
