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Market Snapshot – Gold Gains as Dollar Falls

By:
Colin First
Published: May 11, 2018, 13:27 UTC

The gold prices have risen as the dollar weakens and risk grows

Forex News

Gold Rises

The gold prices have moved higher in a slow and steady manner as a combination of increase in risk and the weakness in the dollar has given some well needed respite for the gold markets over the last 24 hours. We have seen the gold prices move through the $1320 region during this period after having spent a lot of time within this region over the last few days. We are not yet sure how the situation in the Middle East is going to escalate over the next few days and till we are sure about that, the gold prices are going to trade in a buoyant manner. Also, the dollar has weakened during this period due to the weak inflation data that we saw from the US yesterday. This continues the trend of weak data from the US and it could place some pressure on the Fed as it sits down and mulls the rate hike in the near future. Weak inflation and weak employment is not good for any economy and this is the dilemma that the Fed has to deal with in the short and medium term.

Cryptos Fall

The crypto markets are now in a bearish phase for the short term as the prices have crashed during this period and now we are seeing the BTC prices trade in the $8500 region over the last few hours. This is a region of support for the prices and as long as the bulls are able to hold this region, they should be able to retain control of the market. If they fail to do so, then it is likely that the prices are going to fall further in the weekend and this would lead to the traders and investors scurrying for cover. We will have to wait and see how the situation develops.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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