ISTANBUL, Jan. 25 (Xinhua) -- Gold and silver prices in Türkiye have climbed to record highs amid a global surge in precious metals, straining the domestic market and worsening inflation and currency volatility.
The price of gold rose by 0.68 percent on Friday to an all-time high of 7,049 Turkish liras (162.7 U.S. dollars) per gram, while silver climbed to a record 138 liras (3.2 dollars) per gram, according to data from local market tracker Canli Doviz. Since the beginning of this year, gold prices have increased about 18 percent while silver has surged nearly 39 percent.
At Istanbul's Grand Bazaar, gold trader Resat Yilmaz said the sharp and rapid price fluctuations are rippling through the market, taking a heavy toll on developing economies like Türkiye.
"Jewelry workshops are nearly at a standstill, and production has almost been halted," Yilmaz told Xinhua on Saturday.
He said soaring gold prices and investment-driven demand have driven up raw material costs, leading to a roughly 60 percent plunge in production, while market uncertainty is paralyzing both producers and consumers.
"It is impossible to predict what will happen tomorrow. Right now, everyone is worried -- whether they are buying or selling," Yilmaz said.
The impacts are also visible in the silver market, where trading dynamics are shifting. Sabri Demirci, a silver artisan at the Grand Bazaar, said the rally has altered traditional trading patterns.
"People are increasingly selling their silver pieces as prices rise day by day. Many workshops have stopped taking new orders because silver shops are buying silver directly from individuals instead of commissioning new production," he told Xinhua.
Demirci said he now works only for a small number of private clients, as orders from jewelry shops have disappeared.
Can Korucu, a jewelry craftsman with 30 years of experience, said his jewelry workshop at Kuyumcukent -- one of the world's largest gold, silver and jewelry centers in Istanbul -- had been shut down.
Escalating global tensions have driven up gold prices and raw materials costs, leaving workshops unable to cover basic operating expenses, said Korucu.
Murat Tufan, research director at Destek Portfolio Management, noted that many countries are ramping up their gold holdings to reduce reliance on the U.S. dollar amid ongoing trade tensions and geopolitical risks.
For economies like Türkiye, where the local currency remains vulnerable, global turbulence translates into sharper price hikes at home, he said, estimating that the Turkish lira could weaken by around 20 percent this year.
The Turkish lira has weakened by 21.4 percent against the greenback since the start of 2025, sliding from 35.72 per dollar on Jan. 1 to about 43.37 per dollar on Saturday night. ■
