Gold Continues to Chop Around
The gold prices continued to move lower over the last 24 hours as the bullish momentum generated due to the weakness in the dollar fizzled out in a slow and steady manner during the course of the day. The gold prices are now trading in the mid 1320s and it looks as though it would head to the support region around 1320. There has been no specific reason for the gold prices to move lower during this period as the weakness in the dollar continues unabated. We saw the ADP employment report from the US come out stronger than expected but this did not seem to have an impact on the dollar across the markets. Hence it was indeed a bit of a surprise that the markets pushed the gold lower during this period.
Gold on the Backfoot
But on the other hand, this only goes to show how weak the gold market is and how the lack of demand in the market is there for everyone to see. The gold prices have been at the mercy of the dollar over the past few months and that is why it has been chopping around during this period and even periods of large bullishness have been met by some strong selling which have only sought to reverse the strength of the gold prices in the short and medium term.
The oil prices have dropped lower yesterday on the back of a inventory data report which showed that there has been a greater build in the inventory than what was originally expected. The prices have since dropped below the $62 region and trade just above the $61 and this is in line with the choppy trading that we had predicted in the oil markets in the short and medium term as well. We expect the $60 region to hold the prices for now.
Silver prices continue to chop around, continuing the trend that has been there in the markets over the last few months. The silver market does not seem to have a direction of its own and it always looks towards the gold market for it direction.