Gold Just Below $1200 and Looking Higher

Gold prices have been trading in a strong manner over the last few days and it seems as though the prices are trying to form a base.
Colin First
gold 1

There has been a talk in the market that the gold prices might fall as the US and the Fed have continued their policy of hiking the interest rates. This is expected to give a lot of strength for the dollar in the short and medium term and this is in turn expected to push the prices of gold lower.

But so far, the interest rate hike from the Fed has been minimal and one of the main reasons for that could be the fact that the Fed had made its intentions pretty much clear at the beginning of the year itself and hence the market is not surprised.

Gold Buoyant

The Fed has been following the script pretty much to the T and this has helped the traders and the markets to be ready for what it has been throwing at them over the last few months. This has led to the dollar to strengthen in a slow and steady manner during the course of the year and that is also why we have been seeing the gold prices move lower during the same period. But unlike some of the previous times, the move lower has been slow and steady and there has not been any kind of knee-jerk reaction. We did see the gold prices dip briefly over the middle of last month but it has been fine with its moves since then.

The prices continue to trade below the $1200 region but it seems that some kind of base and support is forming in the prices and this could lead into a bull run towards the end of the year. The moves and the price action in the other instruments also point to a weakness in the dollar in the coming weeks but we will have to wait and see whether that indeed happens in the coming days. If it does, then we should see the gold prices shoot through the $1200 region once again.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US