Gold Prices Continue to Crash
Gold prices continued to crash lower as the stock markets continued to rebound and the dollar also continued to hold steady over the last 24 hours. The dollar has been proving strong all across the board but it is against the gold that it has been able to make most progress. The gold prices have crashed from above 1340 just around a few weeks back to now trade below 1280 as of this writing and it continues to remain weak. We had mentioned in our forecast yesterday that the gold prices are likely to suffer and a move below 1285 could lead to a much larger move below and that is what we are seeing now.
Gold Prices Expected to Move Further Lower
The gold prices had moved higher on the back of increased global tension due to the threats from North Korea. But as the threats began to subside and the dollar began to rebound, we are seeing the opposite effect take place as the gold prices have since been dropping. This is set to continue in the short and medium term as we believe that the dollar would continue its rebound. Any bounce in the gold prices should now be viewed as an opportunity for it to be sold. We had mentioned the same when the prices bounced towards the 1310 region on the back of another threat from North Korea a few days back. The fading of that move has now led to the prices dropping by just over $30 in a matter of couple of days.
Oil prices continued to hold steady during the course of the day yesterday as there were no fundamental drivers for the oil market during this period. They continue to trade strongly above the $52 region though the progress from here to $55 is likely to be met with a lot of selling and hence it is likely to be quite slow. The oil prices have been buoyed for the week on the prospect of the production cut continuing through 2018 and if this does happen, it should help the oil prices move towards the $60 mark in due course of time.
Silver prices also continued to trade in a weak manner but the pace of the fall in silver seems to be much slower than that in gold. The prices continue to trade below the $17 region and this is likely to continue in the short and medium term. Like gold, it is advisable to view any bounce in the prices as an opportunity to go short on silver.