Gold Continues to get Pounded

Gold prices continued to fall for another day as this time, the dollar strength has truly gained and we are seeing the dollar bulls run amok all across the board hurting all those that come in their way. They have been brooding and waiting for the right time to strike and with the Fed giving them the license last week, they have seized the opportunity and have been pushing through with their dollar buying ever since. Just like how gold prices have rocketed higher on every dollar weakness, we now see the gold prices getting hit on every dollar strength and we are now in the 1248 region which looks under serious threat.

Gold Prices Slump As Dollar Strengthens

A clean break of this support region is then likely to target the 1220 region in the short term and that will be a very bad sign for the gold bulls who will then have to do all the work again. The stock markets have also been tearing higher, especially in the US, and we are seeing more and more investors pulling out their funds from gold and silver and pushing it into the stock markets in the hope of better returns. All this has affected the gold prices and we have been seeing the gold prices drop by close to $40 over the last few days of trading and there does not seem to be any respite in sight. It is better for the bulls to stay on the sidelines for now and let the bears run their trades and wait for the right moment to buy which may arrive at around the 1220 which has been the site of many a bounce over the last few months.

Oil prices continue to trade in a weak manner near the lows of their range. We have been mentioning over the last few forecasts that the oil prices are now in a region which has brought about many bounces in price over the last year or so and though there are no fundamentals supporting the oil prices as yet, we might get some production or inventory data during the course of the week which is likely to lead to a bounce. This is probably the last hope for the oil bulls.

Silver prices have also been trading down in the dumps over the last few days as they, like the gold prices, have been hit hard by the strength of the dollar and the return of risk in the markets in general. The prices are likely to continue to trade in a weak manner over the short term.