Market Snapshot – Gold Prices Soft

Gold Prices Soft

The gold prices have moved down lower again as a combination of technical and fundamental factors have sought to weaken the gold market and push the prices back towards its usual trend. The technical side points to further weakness as there is a lot of selling in the support turned resistance region near the $1305 price region while on the fundamental side, there is a semblance of stability returning back into the markets and this should help the markets to move higher. This leads to a withdrawal of funds from safe havens like gold and silver and these then get pumped into markets with risk like the stock markets. We are likely to see the resumption of the downtrend in the gold markets over the next fewdays and we should see the gold prices return back to theur support region around 1280 in due course of time. The price action over there would point us to whether the prices can continue to move lower or whether there would be a reversal in the trend over the coming weeks.

Cryptos Rise

Apart from the stock markets, the other market that usually benefits from a decrease in risk and lack of demand for safe havens is the crypto market and that is why we are seeing the bitcoin prices trading in a buoyant manner over the last 24 hours. The prices have been trading above the $7500 region most of this period and it remains to be seen whether the bulls would have enough power and momentum to continue to push the prices higher through the 7800 region during the short term. We will have to wait and see the price action unfold in the short term and look for signs of breakout in either direction or else the traders should get used to consolidation and ranging over the next few days.