Gold Prices Heading Towards $1280 Support

Gold prices continue their journey lower through towards the $1280 region and at this point in time, it seems to be a bleak future for the gold bulls. The dollar has been gaining in strength all across the board over the last week or so and the fact that gold prices have broken through their long-held range and continued lower shows that much more weakness is along the way.

For long, lasting several months, gold prices had been stuck in a range between $1300 and the $1360 regions and it appeared as though prices would continue to stay over there forever.

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Gold Prices Continue Lower

It is the dollar strength, fuelled by some strong data and anticipation that the Fed would now be able to sound hawkish, that gold prices have slipped lower and the market now is likely to look much lower as far as the gold prices are concerned.

With the FOMC meeting and minutes later in the week, today is likely to be looked forward to by the traders and the investors as they look ahead to some hawkishness from the Fed and also timelines for the rate hikes in the coming months. If this happens, then we could see another bout of weakness in the gold prices.

Oil prices continue to move higher as the uptrend that had set in the markets several months back, after the commitment of the oil producers to cut down on their production and their determination to push the oil prices higher, still, continue unabated and as of now, there is no threat of a reversal as yet. The developments in West Asia also seem to have added fuel to this fiery trend.

Silver prices have managed to hold on to the support in the $16 region so far but it is a market that is unlikely to receive a lot of attention in the coming days and hence it is no surprise that the prices have continued to consolidate and range with a bearish bias.