Gold Continues to Lounge About the Range Lows

The gold prices continue to chop around as the investors and the traders are not sure which way they should be pulling the prices to. This has led to some kind of a consolidation over the last couple of days as the prices range near the support region and the range lows without being able to move higher. There have been a couple of attempts to move higher but they have been beaten back by some strong selling and this has led the prices to drop lower during this period. It has indeed been some hard work for the bulls but they would be hoping for better times again. It is unlikely that there would be any major recovery in the gold markets due to a couple of reasons.

Prices Under Pressure

The first reason is the fact that the dollar has recovered and rebounded over the last week or so and continues to look strong. With the new month upon us and with it being likely that the incoming data from the US during the later part of the week could be stronger than what we saw last month, it is possible that the dollar strength would only grow even more. On the other hand, we are also seeing the risk sentiment improve around the globe with North and South Korea coming closer with great bonhomie. That bodes well for the future in that region and we should be seeing the stock markets respond which should bring in further pressure on the gold prices.

The oil markets have also been moving lower but they still continue to trade in a strong manner with no signs of any kind of reversal and the prices have been trading pretty strongly above the $65 region as of this writing. It is likely to bide its time before it resumes its trend again.

The silver prices are back below the $17 region and that can only mean the continuation of the ranging that has been going on, between the $16 and the $17 regions over the last many weeks.