Gold Pushes Lower on Dollar Strength
The gold prices fell on Friday and the fall continues to run as of today as the dollar continues to rebound all across the board. There has not been any specific reason for the rebound in the dollar just as how there was no specific reason for the fall in the dollar over the past 1 week or so. The gold prices had been trading near the highs of their range and were looking for a breakout through the highs on a semblance in further weakness in the dollar during the first half of the day on Friday. But the dollar managed to turn things around and this helped the dollar to recover. There was not much new fundamentally or economically on Friday and the only thing that has been supportive of the dollar has been the turnaround in the stock markets.
Gold Lower as Dollar Rebounds
The stock indices in the US continue to recover from their fall late on the day on Friday and this has helped the dollar to gain in strength during this period. The traders feel that they can pick up stocks at the lower prices and that is why we have been seeing a recovery in the markets and a recovery in risk as well. This has helped the dollar to move higher and led to the migration of funds from gold into the stock markets and the dollar as well. A combination of return of risk and a recovering dollar has hit the gold prices very hard and hence we are seeing the gold prices tumble below the 1350 region as of this writing. This presents a very difficult picture for the gold bulls as the region around the range highs would now prove to be an even more difficult price to crack.
The oil prices continued their recovery over the last couple of days and the prices now trade above the $62 region as of this writing. As we have been mentioning a few times in our forecasts, the oil prices are likely to remain steady in this region and we should see some consolidation and ranging in the medium term within a wide range between the $60 and the $70 regions.
The silver prices have not been trading confidently even when the gold prices were moving higher steadily and all they have needed is a semblance of strength in the dollar which has since pushed the silver prices towards the $16.5 region. The bleeding is likely to continue in the short term.
This article was originally posted on FX Empire
