Gold Prices Continue Their FallThe gold prices continued to move lower on the back of dollar strength
Gold prices fell once again during the course of trading yesterday as the strength of the dollar continued to dominate the markets even though the market had less volatility and liquidity due to the bank holiday in the US yesterday. The prices have broken below the 1340 region as of this writing and it seems as though the reversal is now leading to panic and selling of alarming proportions at this point of time. The bulls need to make a stand somewhere and sometime quick in order to restore some balance in the market else the selling would only accelerate even further which would then push the prices towards the 1320 region in due course of time. The dollar is not into full swing as yet as far as its growth in strength is concerned and this is what has been helping the gold bulls so far from larger losses.
Gold Moves Below $1340
The gold market continues to trade on a shaky note and we have been pointing out this fact in many of our forecasts. The gold bulls would need a break of the range highs in the 1360 region for them to regain confidence in the bull run higher but with the possibility of further rate hikes from the Fed in the coming months, it would not be prudent to expect the gold prices to launch a breakout at this point of time. So, the bulls would need to limit the losses and hope that the dollar loses its sheen which it is right now having due to the strength of the incoming data and also due to the strong possibility of rate hikes.
The oil prices continued to consolidate and range on either side of the $62 region which is something that was expected considering the lack of fundamentals and economic data from the oil market over the last 24 hours. The prices are expected to continue to be buoyant in the short term.
The silver prices have also moved lower in line with the gold market and it has to be said that the silver market never managed to gain any sort of momentum even when the gold prices were flying high and so this fall is a kind of double whammy for the silver market.