Gold Prices Choppy

Gold prices continue to chop around as the confusion among the dollar traders is clear for everyone to see. Weare seeinge the dollar continuing to flounder as the question of whether risk or rate is supposed to dominate has been ruling the markets over the last 24 hours and this is likely to last over the short term. There is an anticipation in the market over the rate hikes from the Fed in the recent days. The incoming data from the US has been good and this has certainly almost confirmed that the Fed would be hiking rates this month. Also, the market hopes that the strong data would help the Fed to think about having more than 3 rate hikes during the course of the year and that has been driving the dollar.

Gold Undecided

But the decision of the US administration about imposing tariffs on import of metals has increased the risk and uncertainty so far, mainly due to the fact that there is a fear that it would lead to a global trade war. This possibility and the associated risk has helped the gold prices to climb from the lows and this is the only news that has helped to prevent the gold prices from sinking lower over the last few days. This is expected to continue in the short term as the market awaits the NFP and other major data from the US in the coming days.

The oil prices have also continued their recovery over the last few days as the prices traded above the $62 region in a comfortable manner over the last 24 hours. This has happened as the dollar has been on the backfoot during this period and this is expected to continue for today as well.

Silver prices continue to chop around the $16.5 region as they have been doing in the recent past and we are seeing the market await further direction in an instrument where prices have been very slow to react over the last few months.