Gold Prices Fall Towards Support

The gold prices have continued to move lower towards their support region as the dollar strength has begun to assume alarming proportions as far as the investors in gold are concerned. We have been saying for long that the bull run in the gold prices are on shaky ground as the lack of demand for gold around the world and the fact that the Fed would be hiking rates atleast 3 times during the course of the year is enough to bring in a large fundamental change as far as the gold markets are concerned. The gold prices had been buoyed mainly due to the fact that it has been viewed as a safe haven all along and hence it attracted the funds whenever the risk around the world increased as funds began to search for decent returns and safer ones as well.

Gold Moves Towards $1320

But that sheen in gold is likely to be lost as the dollar has also risen as an alternate safe haven as well and with the rates in the US being hiked on a consistent basis, it is likely that many investors begin to view gold as not only a safe option but also as an option that is likely to bring in good returns in view of the larger interest rates. That is why we have always said that the increase in interest rates in the US and the world over is likely to place the gold prices under pressure as the funds are likely to go to other instruments in search of better returns. So, the prices of gold rising was not in sync with this theory and thats why we have been sceptical about this bullish move.

The oil prices have corrected lower and are back in the $61 region and as we have been pointing out in our forecasts, we believe that the oil prices are likely to be more choppy and consolidate and range over the short term and are unlikely to continue to rise higher unbarred as they have been doing over the last few months.

The silver prices have also been generally steady but the silver market seems to be something that has lost the focus and the attention of the traders over the last couple of months as the traders talk about gold and cryptos as well.