Gold Prices Stay Near Range Lows, Awaiting Data

The gold prices continued to trade near the lows of its range as the market awaits the NFP data from the US later in the day. The dollar has been able to gain in strength over the last few days and this has led to the gold prices moving lower. Also, there has been a general improvement in the risk sentiment overall all around the world and this has helped the stocks to recover despite the fact that the US has imposed even more tariffs on the Chinese goods. This has once again raised the spectre of a global trade war breaking out in due course of time but the stock markets do not seem to be too concerned about that at this point of time. This has led the funds to be diverted away from the gold markets and that is why we are seeing the gold prices fall.

Gold Prices Near Lows

On the other hand, the NFP data later in the day is expected to play a crucial role in the way the market reacts to the dollar. The dollar has been able to rise mainly on the back of strong incoming data which has spurred the faith that it would be able to encourage the Fed to push in additional rate hikes than the 2 that the market has priced in for the rest of the year. With the speech from the new Fed Chief Powell also scheduled to be held later in the day, it is likely that the traders would be awaiting these developments before deciding on the next direction for the gold market in the short term.

The oil markets continued to trade within a small range and consolidate above the $63 region as of this writing. This is expected to continue in the short and the medium term as well as the volatility dies down in a slow and steady manner.

The silver prices have also been trading near the lows of the range and this kind of consolidation and ranging has been going on for quite some time now, in this market. The prices have been following the gold market in tandem and we do not see any change to that in the near term.