Surge in Gold Prices Complicates Turkey's Inflation Battle While Boosting Central Bank Assets

Turkey's recent surge in gold prices has increased household wealth by billions, complicating the central bank's efforts to control inflation. However, this rally has also boosted the bank's foreign assets by $30 billion, providing crucial support for the economy amid currency fluctuations. While the rising gold prices present challenges for monetary policy, they also enhance the bank's reserves and investor confidence.