Gold Prices Fall As Risks Fade

Gold prices had a large correction yesterday as many of the risk events which had threatened to derail many of the markets, fizzled out overall and what was left was a sea of calm in the markets. This encouraged the investors to start buying stocks again in the hope that the next leg of the bull run would arrive soon and this in turn led to a pull out of the funds from safe havens like gold and silver. This was the reason why the gold prices fell towards the 1270 mark during the later half of the day as it became more and more clear that the events of the day would not bring in as much risk and uncertainty as was expected.

Gold Crashes Through

The ECB chose to strike a neutral to slightly bearish tone while the Comey testimony, though not short of words and accusations, failed to tingle the markets and the markets did not react too much to it as it was clear that there wasnt much there that could upset Trump and his plans. This led to some overall relief in the markets which helped the stock markets to move down and the gold prices, which had risen in anticipation of some major risk events, fell hard during the course of the day and thats where they continue to trade as of this writing. The gold prices did reach the 1270 region but have since recovered somewhat to trade closer towards the 1280 region and we believe that the prices would consolidate in the short term as the markets next begin to focus on the Fed meeting next week where they will decide whether to hike or not.

Oil prices continued to consolidate and hold steady over the last 24 hours as the focus was more on the euro, the dollar and the pound and the developments in other parts of the world, though few and far between, were generally ignored by the markets. This helped to provide some relief to the oil prices which continues to trade in the $46 region looking as weak as ever, especially after the inventory data from the day before which showed a huge build up in the inventory.

Silver prices also fell below the crucial $17.5 region during the course of the day yesterday as the investors chose to pull out their funds from the safe havens like gold and silver so that they could invest them back into the stock markets as the risk events passed off one by one peacefully.