Gold Prices Correct Lower As Hurricane Irma Weakens

The gold prices moved lower during the course of the last 24 hours as the risks receded in the markets which helped the stock markets to rebound and this led to a correction in the gold prices. The correction has gained steam as of this morning as the dollar also joins the recovery and this double impact has the gold prices reeling at this point of time. The prices had risen last week due to the increase in risks that was seen due to the threat from North Korea. There were reports that said that the country could be launching a missile over the weekend and this led to increase tension and uncertainty which weighed on the stock markets. It also meant that investors moved their funds into safe havens like gold and silver and this helped to push the prices higher. The dollar was also on the backfoot on this news and also due to the Hurricane Irma sweeping through the region.

Gold Prices Likely to Remain Weak

But over the weekend, we did not have any missile launches in the Korean region and we also saw that the impact of Hurricane Irma was lesser than what was earlier expected. This helped the stock markets and the dollar to rebound and the prices of gold to move lower. The prices gapped lower on market open yesterday and continues to move lower and trades in the 1325 region as of this writing and it is likely to trade weakly during the course of today as well.

Oil prices also managed to recover over the last 24 hours as the impact from Hurricane Irma turned out to be lesser than expected and this helped to calm down some of the fears over the supply and demand for crude oil from the US. Also, we had Saudi Arabia reporting that it was looking to extend the production cut further so as to keep the oil prices buoyant and this helped the oil prices to move above the $48 region once again. It is likely to continue to trade in a strong manner over the short term and we could see the $50 resistance region coming into the picture then.

Silver prices also corrected lower on receding of risks but the impact on their prices was lower than that on gold. It continues to trade in a weak manner below the $18 region and this is likely to continue in the short term.