Gold Prices Continue to be Under Pressure

The gold prices continued to chop around in a weak manner as the dollar strength can be seen all across the markets over the last 24 hours. The prices are expected to continue to be weak over the coming days as well as the dollar strength begins to assume large proportions. The prices are now trading near the lows of the range and the test of the 1300 region could be only a matter of time. We have been talking about the inherent weakness in the gold prices and how it could not sustain the move towards the highs of the range when the demand is low and the dollar was expected to gain in strength. For the gold prices to gain in strength under such circumstances, it showed that something was not correct.

Gold Prices Lower

This is the reason why we had been advising the gold traders to ensure that they stuck to the ranges and seek to go short at the highs of the range. It remains to be seen whether there would be a bounce in the prices in the short term and even if there is, it is likely to be heavily sold into. With the new Fed Chief Powell also painting a strong picture of the US economy, the rate hike in March and more rate hikes in the coming days are more or less confirmed and this should keep the gold prices under pressure in the medium term.

The oil prices continue to move lower through the $62 region due to the impact of the strengthening dollar. This is likely to continue for the short term but as we have been saying over the last few forecasts, the oil prices are only going to chop around and we believe that the period of strong trend, in either direction, is over in the oil markets for now.

Silver prices continue to trade below the $16.5 region and like the gold prices, these prices are also expected to trade under pressure in the coming days which could then see them making a beeline towards the $16 region.