Gold Prices Fall on Stronger Dollar

Gold prices have been plunging lower over the last 24 hours as the dollar began to gain back some of its strength over the last couple of days. The gold prices had risen to the top of the large range last week on the back of fears and uncertainties over the trade war breaking out. But over the last few days, there has not been much developments or follow up regarding this action and that is the reason why we are seeing the risk sentiment going down around the markets as a sense of calm begins to come over the markets. The stock markets have been able to recover since the beginning of the week and as the markets begin to recover, we are seeing the investors and traders moving their funds back into the stocks.

Gold Prices Lower

This has led to a drain of funds from the gold markets to the stock markets and this has placed a lot of pressure on the gold prices. This is one of the major reasons for the prices to start falling and we have seen the gold prices fall from the top of the range towards the 1340 region as of this writing. It appears that the weakening might continue for a bit but for the long term traders and the trend traders, it would be a disappointment as this has meant that the gold prices are back into range and this would mean more of consolidation and ranging in the short term.

The oil prices have also been dropping lower since the beginning of the week and after testing the highs of the range, the prices have started falling back and now trade in the $64 region. The recovery and the rebound in the dollar also seems to have contributed to the fall in the oil prices and this has also made the oil prices come back into range.

Silver prices have been trading between the $16 and $17 regions and they seem to be poor cousins to the gold market since the beginning of the year with no end in sight for this ranging.