Gold Prices Back at the Lows Due to Dollar Strength

The gold prices tried to stage a recovery during the course of the day yesterday but was promptly beaten back by the strength of the dollar. The markets have been generally choppy since the beginning of the week as there have been several fundamental and economic factors in force during this period and that have tended to push the prices here and there. That is why we are seeing the dollar having a strong performance against certain instruments while it has been faring badly against the others. Likewise, we have also been seeing that the stock markets have been choppy but the moves in the gold markets do not seem to correspond with those in the stock markets and this is making it difficult for the traders.

Gold Still Languishes at the Lows

Looking ahead, it is going to continue to be choppy as we head towards the end of the month. There have been no major indications from the Fed on whether they are going to deviate from the rate hike path that they set themselves at the beginning of the year and hence the market is likely to be in a wait and watch mode to decide on whether there is going to be any deviation. The path that has been set has been good for the market which has already managed to price it in and hence, unless there is a change to that, it is unlikely that the strength of the dollar is going to vary too much in the short and medium term as well.

The oil prices dropped lower as the private inventory data for oil showed a greater build than what was expected and this is going to affect the prices in the short term. The actual release of the public data is going to be today but the private data has not been good for the prices so far and hence the correction.

The silver prices are also firmly back in the range between the $16 and the $17 regions at this time and it is likely that it will continue in this range for the short term.