Market Snapshot – Gold Prices Get Some Relief

Gold Prices Higher

The gold prices have managed to get some relief mainly due to the weakness that is being seen in the dollar over the last 24 hours. The anticipation over the FOMC minutes has reduced to an extent during this period and this has given some respite to the dollar bears as the dollar bulls took a break. We can only view this change as a break and a correction of the trend in the dollar and it cannot be viewed as anything more than that. The gold prices broke through the lows of the long held range a week or so back and since then we have been seeing the gold prices moving lower. With this in mind, we can only say that unless and until the gold prices break back through the 1300 region and continue to move higher and show strength beyond this region, we would believe that the market would be in the bearish grip for now. The FOMC minutes could turn out to be hawkish and if and when that happens, we could see the next bout of strength in the dollar which should push the gold prices even lower than what it is now.

Stocks Steady

The stock markets have remained firm mostly and they have been well supported by the improvement in the global risk sentiment that we have been seeing over the last month or so. The US stock indices continue to move higher on the back of a stronger dollar and also strong earnings that have been posted by various companies. Also, the European stock indices have also been bolstered by the fact that the weak incoming data from the Eurozone has postponed the tapering plans for QE from the ECB. A combination of these factors have helped the stocks to move higher during the short term.