Gold Prices Crash Through $1260

Gold prices continue to weaken over the last 24 hours as the huge demand for bitcoins and other assets that are likely to bring in a lot more returns, has removed the sheen from gold. For long, gold was considered as a safe haven which would be used by people and investors to store their funds so that it is available as and when needed. But with the current scenario of bleak returns offered by a variety of instruments, including gold, the people and investors are tired of such instruments and this is where the huge returns offered by bitcoin trading is beginning to lure more and more traders away from traditional instruments like gold.

Gold Prices Under Pressure

This is one of the main reasons for the fall in gold prices at a time when the market is expected to be less volatile as we near the end of the year. The fact that the prices are falling makes the future look quite bleak for the gold market in both the short and the medium term as well. Also, with the cycle of lowering interest rates ending and the central banks beginning to hike the rates, it has only added to the pressure on the gold markets and the gold prices as well and we are seeing many investors flocking out of the gold market and diversifying their holdings into other instruments.

The oil prices fell towards the $56 region as the commodity prices have come under pressure over the last few days. There is some strong support in the $55 region which should hold the prices for the short while we expect the volatility to become lesser and lesser in the short term as the year winds down. The next target of the bulls is $60 but it looks though it will take a bit of time to reach there as focus shifts elsewhere.

Silver prices also continued to be under pressure as they broke through the $16 region and moved lower over the last 24 hours. The silver market is expected to suffer much more than the gold market during the short term.