Gold Prices Continue to Correct

The gold prices continued to slide for the second day today as the strength of the dollar pervades all through the market and the situation is only getting worser by the day for the gold bulls. The gold prices seem to be heading towards the $1320 region in the short term and that would mark its entry into the lows of the range and after that, the price action would depend on how the dollar strength pans itself out in the coming days. The dollar is supposed to be a lot weaker than what it is now but that is not something that we are seeing at this point of time. With 3 rate hikes for the whole of this year being already priced into the markets, there is not much for the market to look forward to.

Gold Prices Near Support

The Fed is also not in a position to push through any more rate hikes in an accelerated manner due to the fact that the incoming data from the US has not been as strong as they would have liked. This has placed them on the backfoot at this point of time. But even then, despite all the uncertainty surrounding the US and the trade related issues, the dollar continues to go from strength to strength in the short term and that is why we are seeing the gold bulls struggling to make an impact and the market being held within the range all these weeks.

The oil prices have not shown any major impact from the strength of the dollar and continue to trade in a strong manner. The prices are approaching the $70 region at this point of time and the momentum is there for the prices to push through the $70 region and move beyond that as well.

The silver prices have also corrected lower and are now trading well below the $17 region as of this writing and it looks as though the prices are back in range between the $16 and the $17 regions at this time.