Gold Moves to Lows and Bounces

As expected, the gold prices have moved towards the lows of its range and has since bounced higher towards the 1270 region as of this writing. This kind of ranging and bouncing can be expected in the short term as we do not expect the gold prices to break through the range on any side during this period. The volatility in the coming days is expected to be low though there is a lot of news in the upcoming days and next week as well. The dollar has remained steady over the last 24 hours but of late, we are seeing the gold market losing its sheen. Some of it can be attributed to the lack of demand in general and some of it can be due to the demand for bitcoins. Of late, it has been noticed that the bitcoin market has been eating into the other markets as well.

Gold Prices Await Further Developments

Some of the investors and the traders in gold and other markets have been drawn towards the high returns provided by the BTC market and this has also led the gold prices to move downwards. Add to this, the pressure from the dollar as the market awaits the passage of the tax reform bill and also the rate hike from the Fed this montn and we have the perfect recipe for the weakness in the gold prices. This is likely to continue in the short term and the lows of the range is likely to come under severe pressure in the coming days, though we do not yet have any signs of the lows breaking through.

The oil prices continue to consolidate and range and it is a good sign for the bulls that the prices have not fallen through and that the period of consolidation continues over the short term. The next obvious target for the bulls continues to be the $60 region, which now appears only to be a matter of time. We do not expect too much volatility in the prices in the coming days as we wind down towards the end of the year.

The silver prices also continue to flounder and seem to be under even more pressure than the gold prices. The bitcoin craze has seem to have affected the silver market as well, in the short term and this is likely to be the case in the upcoming weeks as long as the bull run in the BTC market continues and BTC gets all the focus.