Gold Prices Hug on to Support

The gold prices continued to trade under pressure but the prices seem to be hugging on to the support region of 1248 so far and this has been the case on Friday and today as well. It remains to be seen how long it would be able to hold on to this region as we have a slew of data and major economic events for the rest of the week and each one of these is likely to have a large influence on the markets. On Friday, the gold prices came under strong pressure from the dollar as the incoming data from the US continued to be supportive of the dollar. The NFP data was released on Friday and it came in stronger than expected which helped the dollar to gain strength all across the board.

Gold Under Pressure

For sometime it did look as though the support region would be broken and that the gold prices would be looking much farther below but none of that happened as the prices managed to recover but so far, the bounce in the prices has been very weak and does not inspire too much of confidence going forward. As we had mentioned in our forecast last week, the gold market has been stunned by the huge interest in the bitcoin market which provides another opportunity for traders and investors to look for large returns. This has ensured that some funds are moved out of the gold market and with the gold prices already under pressure from lack of demand and the strength of the dollar, it has only made the situation worse for gold bulls.

The oil prices also trade in a steady manner and as we had mentioned in our forecasts last week, the market is likely to continue to be so in the short and medium term as well as we head towards the end of the year and the liquidity and the volatility is likely to die down during this period.

The silver prices also continue to trade in a weak manner as the prices are below the $16 mark as of this writing. This is likely to be the case as the commodity market comes under pressure both on the demand side and also from other instruments which seek to gain the attention of the investors.