Gold Prices Shoot Higher

The gold prices shot higher on the back of some weak dollar trading that was seen all across the board over the last 24 hours. The gold traders have been able to make use of any kind of strength or weakness in the dollar to push the gold prices in either direction at any point of time. In fact, the gold market has been one of the most reactive markets to the strength and the weakness of the dollar over the last few months. One of the reasons for this to happen is the fact that the demand for gold has been fairly stagnant during this period and hence it has been easy for the investors and the traders to push the prices in either direction without facing any kind of resistance from the other gold traders.

Gold Prices Higher on Weaker Dollar

The reason for the current move higher is due to the fact that the economic advisor in the Trump team, Cohn, has resigned and he joins the growing list of people who have been leaving his team over the past few months. This has increased the risk and the uncertainty surrounding the dollar and this is reflected as weakness in the same. The gold prices climbed above the 1340 region on the back of this news but it has since corrected back to the 1330 region as of this writing but it continues to look buoyant as the market awaits the further news from the US over the coming days with the ADP employment report coming out today.

The oil prices have dropped lower back through the $62 region over the last 24 hours despite the weakness in the dollar due to the release of the oil inventory data to private investors which pointed to a greater than expected build in the inventory. With not much else in the form of fundamentals, the oil prices are likely to be driven by production and inventory data in the short term.

The silver prices have also moved higher on the back of weakness in the dollar and now they trade comfortably above the $16.5 region as of this writing.