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Gold Stays Strong as Dollar Remains Choppy

By:
Colin First
Published: Jan 8, 2018, 07:45 UTC

Gold prices continue to remain buoyant as the dollar struggles to generate some strength

Gold Stays Strong as Dollar Remains Choppy

The gold prices continued to struggle at the highs of its range which should now mark a period of consolidation and ranging in the prices. We had expected the dollar to recover some of its strength over the course of last week but the choppy data from the US has put paid to the hopes for now and the market continues to await further direction. Over the course of last week, the gold prices continued to move higher and went as high as the 1326 at one point of time but it was met by a lot of selling in that region which has since pushed back the prices below 1320 where it continues to trade as of this writing.

Gold Near Highs

It remains to be seen what the dollar does this week. There is another set of news from the US that would be released and the dollar bulls would hope that this set of news would be able to erase the memory of the news that came in last week from the US. The news last week was mainly choppy with the ADP employment report coming in stronger than expected but the more important NFP data coming in weaker than expected. The NFP data from last month was revised higher and this helped the dollar to hold steady but as the market returns to full volume after the holidays, not much mercy can be expected from the traders if the data continues to be weak.

Gold Hourly
Gold Hourly

Oil also continues to trade near its range highs in what is seen as a good period for the commodity market. There are no signs as yet of any reversal in the large uptrend in the oil market that has been going on for the last 6 months and it is expected to continue its journey towards the $65 mark in due course of time.

Silver prices also continue to trade above the $17 region which should act as a support for the short term. It remains to be seen what the dollar would be doing in the short term which should then determine the direction that the silver prices would take.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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