Gold Prices Slide Lower As Risks Recede

Gold prices moved lower during the course of trading yesterday, which was only expected as the global risks began to fade and the stock markets began to gather momentum once again. We had mentioned something similar in our forecast yesterday as we had said that over the last couple of months or so, the gold prices have been moving up purely due to the fact that the global risks tended to rise up whenever there was a war of words between North Korea and the US. So, once the effect of that begins to fade, we see the gold prices fade as well.

Gold Prices Likely to Stay Weak

With the frequency of the Korean tit-for-tat increasing, the market is becoming increasingly used to this and hence the effect of such charges is becoming lesser and lesser as time goes on. What would have last for 3-4 days previous only last for a day now and that is why we saw the gold prices slide yesterday.

After shooting through 1300 and 1310 on the back of increase in tension in the Korean region, we saw the gold prices slide below 1300 yesterday and it now trades in a support region around 1292 as of this writing but it continues to look weak. Below this, the next target would be the 1285 region and this region should lend a lot of support for the prices. We do not expect this region to give way in the short term but if it does, then we have to look much lower for next support.

Oil prices continued to trade in a strong manner as the effect of the OPEC meeting last Friday continued to hold sway in the markets over the last 24 hours. The stronger dollar seemed to have little effect on the prices of oil while the OPEC announcement that they do see the possibility of the production cut continuing through 2018 seems to have had a bullish effect on the oil prices. The next target for the prices seem to be the $53-$55 region and it would be a tough ask to crack the $55 region for now.

Silver prices continued to follow the gold prices as they moved lower over the last 24 hours and they continue to trade below the $17 region as of this writing. The silver prices are expected to continue to trade in a weak manner in the short term and traders should be wary of this bearish trend.