Gold Prices Back at the Range Lows as Dollar Dominates

The gold prices have continued to move lower since the beginning of the week and now they are in the lows of their long held range and we believe that this should now serve to arrest the move, atleast for the short term. All the commodities have been hit hard by the strength of the dollar which has been pervading in the market and this is likely to continue as well as the various companies in the US post strong earnings.

Gold Back Below $1320

The yields in the US continue to rise and this has been lending the much needed support for the dollar. That is why we are now seeing the gold prices back at the lows after threatening to break through the highs last week. It is a great time to be a range trader as far as the gold market is concerned as we have been seeing the prices move to the highs and the lows over the past few months. There has been no momentum in the prices when they reach the edges of the range and that is why the range continues to exist. If and when the range does break, we should see the prices moving in the direction of the range in the strong manner but till that time, the trend traders have to wait.

The oil prices have also been unable to make much of a headway over the last couple of days. The prices had roared higher during the last week and it appeared as though the break through the $70 region would only be a matter of time. But that has not happened yet but on the other hand, the bulls have also not lost control as yet. The prices continue to remain buoyant and any large correction should be viewed as an opportunity to buy the oil contracts at a lower price.

The silver prices have also suffered over the last few days and are firmly back in the range between $16 and $17 and they are expected to continue to trade within this range, following the track from the gold markets which are also at their range lows.