The prices have been moving lower due to dollar strength.
It has been a challenging time for the gold traders over the last few days as the prices have risen and fallen with a lot of volatility though we have to say that there is not such important news to bring in such great reactions from the gold market. On the other hand, the traders would also feel a bit let down by the fact that despite a lot of volatility, the prices have not been able to break through the large range which the gold prices have been trading in, over the last few weeks. The prices continue to hog on to the range between the $1300 and the $1360 regions and despite several attempts to break through either side of the range, we have not had any breakthrough in this region so far.
Gold Back In $1320s
Even last week, we saw an attempt being made to break through the top of the region on the back of fears and uncertainties over the breakout of a global trade war but that move higher to the top of the range has been promptly beaten back by some strong selling which has been seen in the markets over the last couple of days as the fears begin to recede. There has not been any follow up action from either the US or China on their threats and this has caused the stocks to move higher and the funds have once again moved from the gold market to the stocks and this has led the gold prices back into the 1320 region.
The oil prices have also moved lower on the back of weak inventory data and also due to the fact that the dollar has managed to gain in strength. This does not pose any danger to the oil markets or the prices as such and the trend is intact though we believe that the traders are unlikely to get the bang for the buck from the oil markets any longer.
Silver markets have also been loitering around as usual and the market seems to have lost its way over the last few months as not many traders seem to be paying too much attention to it, even during times of high risk.