ANKARA
Gold prices on Monday reached the highest point in a month, touching $1,231.23 per ounce by midday.
Traditionally regarded as a safe investment and a hedge against oil-led inflation, current gold price levels have been rated the highest since Dec. 9.
The increase comes after the U.S. dollar stopped rising in value following jobs growth in 2014 but with wages remaining not so strong.
Investors' worries over the EU economy and political situation have also helped to increase gold’s value.
Analysts say if upcoming elections in Greece result in an improved political situation in the country, gold prices will decrease.
If gold prices continue to hold over $1,220 per ounce and reach $1,225 or $1,235 per ounce, it will be another key support for the precious metal, analysts claim.
However, if gold prices fall analysts say $1,115 per ounce will be a strong resistance point where markets may react and start to sell gold.
Gold prices increased due to investors’ rush to buy gold as a hedge against uncertainties prevailing in the global financial markets, says Alper Kalyoncu, chief of gold markets at Turkey's Garanti Bank.
"There is a fear in the EU that Greece will leave the union. ... If the winning party in the country is against the EU, investors will worry whether the country will leave the EU. There is such fear in the market. All these developments cause purchasing to rise on gold."
Kalyoncu said that petrol prices are also expected to get fall further: "This can create problems in the budget of Russia and other countries ... This is also creating fear for investors."
Brent crude oil prices reached $48.50 per barrel on Monday, a decrease of 58 percent from a price of $116 in June last year.
Meanwhile, the Turkish lira/U.S. dollar exchange rate stood at 2.2868 on Monday.
The dollar remained in favor for investors over the last few months as U.S. data have been pointing towards a strong economic recovery.
