Gold Prices Likely to be Under Pressure

The gold prices continued to trade in a subdued manner over the last 24 hours but to the relief of the bulls, the prices managed to bounce off the 1270 region and it now trades in the 1276 region as of this writing. But the bounce has not had much of strength and the weak bounce only points to the prices moving lower later in the short term. The fact that the bounce has been weak at a time when the dollar is on the backfoot shows the inherent weakness in the gold market and the lack of demand as well. This is likely to keep the gold prices under pressure in the short term and this is likely to lead the prices to move towards the lows of its range in due course of time.

Gold Prices Bounce a Little

Yesterday, the headlines was dominated by the tax reform bill and the issues surrounding Flynn and this led the dollar lower across the board. But it was the first day of the week and hence the fundamental and economic drivers were few and far between and not much importance can be attached to such moves. We await the bigger incoming data later in the week and those news events and data are likely to have a bigger impact on the gold prices later. For now, we can expect some consolidation and ranging to continue in the gold prices as the traders await some direction.

Oil prices have moved lower since the beginning of the week as the stronger than expected inventory data from the US last week continues to have an effect on the oil markets. This is likely to last only for the short term before the demand begins to pick up again and this should push the oil prices towards the $60 region which is likely to be the first target for the bulls.

Silver prices also continued to trade in a weak manner and it looks as though it is going to be weaker than the gold prices in the short term. The prices trade near the lows of the $16 region and once the dollar begins to steady later in the week, we could probably see the prices move into the $15 region.