Gold Prices Fall Lower

Gold prices continued to move lower during the course of the day on Friday and as of today as well. The stock markets around the world have been gaining during this period and this has put a lot of pressure on the gold prices. The move lower also marks the fact that after completing the move towards the highs of the range and spending some time over there, the gold prices have fallen back into the range and now, it looks as though they are set to move towards the lows of the range in due course of time over the short term. This would mean that the prices are likely to move towards the 1260 region during this period.

Gold Moves Towards Bottom of Range

The gold prices have been under pressure due to the strengthening of the dollar as well. The dollar has been buoyed by the smooth passage of the tax reform bill through the Senate so far. It is expected that the bill would be passed this week and it should be a boost for the dollar though the strength is likely to be tempered by the developments around the Flynn issue which is basically dollar negative at this point of time. It remains to be seen how this pans out during the course of this week when the focus would be clearly on the dollar and the incoming data from the US.

Oil prices have also fallen slightly as the build up in the oil inventory in the US has been putting the prices under pressure over the last few days. But as we have been saying all along, we expect the prices to continue higher over the short term and we should be looking at $60 in due course of time. The bulls have done a good job so far in keeping the prices high and this is likely to continue in the short term.

Silver prices have also been moving lower as the pressure on the gold prices is beginning to tell on the silver market as well. This trend is also likely to continue in the short term as the dollar strengthens across the board.