Gold Prices Correct Lower As Dollar Gains

Gold prices fell hard yesterday on the back of some strength in the dollar which came in much later in the day. There was also profit taking going on in the markets which helped the prices to move lower. We had warned in our forecast yesterday that the traders and investors were getting tired of trading and pushing against the highs of the range since the beginning of the week and we had also said that the traders would be looking to push the prices lower, collect some buyers at the lows of the range before beginning the next bullish leg and this is what we have been seeing in the markets so far.

Gold Prices Fall Through $1330

The move lower has been fueled by the return of the risk sentiment and also by the improvement in the strength of the dollar which was seen all across the markets yesterday. This has pushed the prices lower below the 1330 region as of this writing but we believe that the gold prices should find support closeby in the 1320-1325 region during the course of the day. This should lead to a bounce and some choppy trading. There is not much economic data around, as we have entered the second half of the month and hence we are only going to see a lot of consolidation and ranging in the coming days.

Oil prices have been holding steady around the $64 region as there has been a lack of action in the oil markets. The inventory data would be released today and with no signs of any kind of reversal happening in the prices, we are likely to see the prices continue to make headway in the short and medium term as well.

Silver prices have also been generally quiet and corrected lower during the course of the last 24 hours and like the gold market, the silver prices are also expected to be choppy in the short term due to the lack of fundamental drivers.