Date: December 16, 2025 | Time: 11:35 AM
In November 2025, a pivotal decision by the Central Bank of the Republic of Turkey (CBRT) to halt the purchase of domestically produced gold has dramatically altered the landscape of the Turkish gold market. For the first time in history, physical gold prices in the Grand Bazaar—a renowned hub for commodity trading—have surpassed those of gold sold in banks. This article delves into the implications of this decision, the ensuing market volatility, and the potential regulatory responses that may follow.
The Decision that Shook the Market
Throughout 2025, gold had been a beacon of stability for investors, consistently rising in value. However, the CBRT’s abrupt decision to cease purchasing domestically produced gold marked the beginning of a tumultuous phase for the market. This policy shift led to an oversupply of gold in the domestic market, fundamentally disrupting the long-standing equilibrium between bank prices and those in the free market.
The immediate aftermath of this decision saw a surge in gold availability, but it also triggered a decline in demand from investors. As a result, many gold pieces remained unsold, creating a backlog that further exacerbated the volatility in pricing.
Sharp Decline in Benchmark Prices
According to a report by NTV, the combination of increased supply and dwindling demand has led to a significant drop in the benchmark prices set by banks for gold sales. This decline is particularly concerning for investors who had relied on the stability of bank prices as a reliable indicator of gold’s market value. The once predictable pricing structure has been thrown into disarray, leaving many traders and investors scrambling to adapt to the new reality.
A First in the History of the Republic
The most striking outcome of this market upheaval is the unprecedented situation in the Grand Bazaar. Traditionally, gold prices in this iconic marketplace have been lower than those offered by banks. However, the recent price surge in the Grand Bazaar has flipped this dynamic on its head. For the first time, gold prices in the Grand Bazaar have exceeded those in banks, marking a historic moment in Turkey’s economic landscape.
This shift not only reflects the immediate effects of the CBRT’s decision but also raises questions about the future of gold trading in Turkey. The Grand Bazaar, long regarded as the heart of the physical gold market, is now a barometer for the broader economic implications of this policy change.
Anticipated Regulatory Responses
In light of the turmoil that has ensued, there are growing calls for the CBRT to intervene and implement new regulatory measures to stabilize the market. Jewelers and tradesmen in the Grand Bazaar have expressed their concerns about the abnormal price movements and the potential long-term effects on their businesses.
Experts suggest that the CBRT may need to reconsider its stance on gold purchases or introduce new policies aimed at restoring balance to the market. Such measures could include re-establishing a framework for gold purchases or implementing price controls to prevent further volatility.
Conclusion
The decision by the Central Bank of the Republic of Turkey to halt the purchase of domestically produced gold has ushered in a new era for the Turkish gold market, characterized by unprecedented price shifts and market instability. As the Grand Bazaar experiences a historic reversal in pricing dynamics, the future remains uncertain. The potential for new regulatory measures could either stabilize the market or lead to further complications. Investors, traders, and policymakers alike will be closely monitoring these developments as they unfold in the coming months.
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