Gold Prices Move Towards Range Lows

Gold prices have moved lower since last Friday as the dollar has gained in strength during this period in anticipation of the Fed meeting later in the week. The prices continue to trade within the range but we can now clearly see that the prices are heading towards the lows of the range. Under normal circumstances, we would expect the lows of the range to hold atleast until the announcement is made but the market cannot be taken for granted and we are likely to see the traders and the investors spooked and the weak handlers giving up on their position if there is a quick move lower just to spook the markets. All this depends on how the market squares up ahead of the crucial meeting.

Gold Prices Under Pressure

The market expects the Fed to hike rates for the first time this year in this meeting and though it is generally believed that the Fed would deliver what the market expects, as far as this aspect is concerned. But it is still open to question on whether this would be enough for the dollar bulls who might be expecting the Fed to lay down the timeline for the rest of the rate hikes as well. It is likely that the Fed would disappoint the dollar bulls on this aspect and if that happens, we are likely to see the dollar on the backfoot for the short term and this should give the much needed respite for the gold prices.

The oil prices moved higher through the $62 region and though the prices have been volatile, they have been largely within range over the last few weeks and this is set to continue in the medium term.

The silver prices also continue to follow the gold market and continue their ranging with not much of action being seen in the prices over the last few weeks. This is again set to continue as we head towards some volatile times in the week ahead.