Gold Prices Bounce of $1300 Region

The gold prices continued to be trading in a weak manner this week as the strength of the dollar has been all pervasive throughout the markets. It is only today that there seems to be some let up in the dollar strength as the markets take a breather and the traders also begin to take profits ahead of some major news later in the week. It is a new month now and as usual, the first week of the new month would have the important employment data in the form of NFP. The NFP data had come in weaker than expected during last month and this had helped the gold prices to rush towards the highs of the range but since then, it has all been one way traffic has the dollar has strengthened all across the board.

Gold Prices Stable

As a result of that, the gold prices have been on the backfoot and we have seen the gold prices move towards the $1300 region from where they have since bounced back over the last 24 hours. Though they now trade above the $1310 region as of this writing, the market is still not out of the woods as yet and this rebound should be viewed only as a breather and a correction of the large move lower rather than any change in the trend. It is likely that the NFP data from the US would come out stronger during this month and if that is the case, then we should see further strength in the dollar which should in turn place the support region around $1300 under a lot of pressure.

The oil prices have also been trading comparatively weakly, according to its own standards, though it has been trading well above the $65 region during this period. Some amount of correction on the back of dollar strength is something that is well expected in this market and that is what we are seeing now.

The silver prices have also managed to hang on to the range between the $16 and the $17 regions over the last few weeks and it continues to do so as of this writing as well. Only the data from the US is likely to shake up the markets in the near future.