Gold Prices Move Lower on Stronger Dollar

Gold prices crashed lower, something which we have been saying for many days now in our forecasts, as the weakness in the euro indirectly seemed to help the dollar to strengthen and this was seen all across the board and this led to the gold prices moving through 1270 and continue to trade below this region as of this writing. We have been saying that the gold prices are expected to be low in the short and medium term as well as the stock markets are expected to move higher during this same period and this is being borne out by the fact that every bounce in the gold prices has been met with some strong selling as the investors continue to pull out funds from the gold market and push them into the interest rates and bond market in the hope of better returns.

Gold Prices Suffer Reverses

There has also been talk of John Taylor becoming the next Fed Chair and this is also weighing on the gold prices as he is known to be a strongly hawkish person and this has led to the belief that the Fed could hike rates quickly in the future which will be beneficial for the dollar. This has led to the dollar moving higher across the board and this has been helping to move the gold prices lower in the short term. Of course, there are likely to be a low of bounces in the price along the way but the overall direction is likely to be down in the short and medium term as the world gets used to higher rates from the various countries.

Oil prices have been trading within a tight range between $52 and $53 for many days so far as they seem to be totally unaffected by the happenings in the dollar. It has been quite sometime since the oil prices have been influenced by the dollar and this is likely to remain so in the short and medium term as well. The oil prices have their own set of fundamentals to deal with and with the lack of developments in them, we are seeing the prices consolidate.

Silver prices have also been moving lower over the last 24 hours as they have also been affected by the strengthening of the dollar. The prices now trade below the $17 region and are likely to remain under pressure during the short term, just like the gold prices.