Gold Rises Higher as Stocks CrashThe gold prices have been able to benefit due to the crash all around the global stock markets
Gold prices are testing out the highs of its range in the 1345 region as of this writing as a whole sale sell off in the markets around the world seems to be helping the prices to move up. In fact, whenever there is a dump of risk, we can see the demand grow for gold as more and more investors pull out their funds from the stock markets and other risky assets and invest them into gold as it is considered as a safe haven. That seems to be the mentality right now as the gold prices have risen through the 1340 region and now trades in a strong manner.
Gold Prices Move through $1340 Again
In fact, considering the rout in the stock markets, we would have expected the gold prices to start moving much higher but the price rise seems to be muted at this point of time due to the strength of the dollar. The dollar has also been gaining ground during this period as it is also considered to be a safe bet to invest in, when the risky assets take a tumble. Add to this, the prospect of further rate hikes from the Fed and improving economic data from the US and we have a good combination which should support the dollar in the short and medium term as well.
Oil prices also continue to chop around and move lower during the course of trading over the last 24 hours. The prices seem to have been impacted by the strength in the dollar and that is one of the reasons why we are seeing that the prices are finding it difficult to push through the $65 region once again. This has led to choppy trading which is likely to last for the time being.
Silver prices have also recovered, following the footsteps of the gold prices, as the global risks take a beating and safe havens like gold and silver benefit out of the move. But the move higher in silver has not been as strong as one would have expected and it continues to trade below the $17 region as of this writing.