Gold Prices Continue to Crash Lower

Gold prices continue to move lower during the course of the last 24 hours and this is in contrast with the risk sentiment during this period which has basically improved. This is also in contrast with the way the bitcoin prices have been zooming ahead during the same period and this could be the start of an inverse co-relation between the gold and bitcoin prices in the short and medium term. The bitcoin market represents large risk and large returns while the gold market is the direct opposite as it is a safe haven and it represents low risks and low returns. So, fundamentally, they are quite the opposite and hence it is no surprise that their prices seem to be moving in opposite directions.

Prices Push Below 1250

Yesterday, the gold prices crashed through the 1260 region and it trades below the 1250 region as of this writing but is likely to see some support in this region for the short term. We have the NFP employment data from the US later in the day and this could see the dollar strengthen further if there is some strong data from there. This would serve as a double whammy for gold and it could only add even more pressure on the gold prices. It remains to be seen whether the support region would hold or whether the US data would come in weak which could then lead to a bounce in the prices.

Oil prices have managed to recover a bit and now trade just under the $57 region once again. The $55 region is likely to act as a strong support and with us approaching the end of the year, we expect the volatility to get lesser and lesser and hence any major moves towards the $60 region may not happen any time soon.

Silver prices also remain under pressure as they continue to trade below the $16 region and they are expected to remain under pressure in the short and medium term as well as the focus shifts to the stock and bitcoin markets.