Gold prices continued to flounder on the back of dollar strength.
Gold prices continued their fall lower on the back of a stronger dollar and so far, the gold market does not seem to be need any sort of major reason to either move higher or move lower for that matter. It continues to range between a large range between the 1300 and 1360 regions and it has been finding it difficult to move out of the same since the beginning of the year. Unless and until a breakout happens, we will advise the traders to continue to trade the range with the stop loss and take profit in the correct areas. If and when a breakout happens, it is likely to be a strong one though.
Yesterday, the reason for the fall in the gold prices was due to the strength in the dollar as the bulls got a shot in the arm as the tariff plan that was signed by Trump was a much watered down version of the original plan. This plan gave exemptions to its neighbours like Mexico and Canada and at the same time, this plan also kept the door open for exemptions for others as well, in due course of time. This came as a major relief to the investors and the dollar bulls and their showed their appreciation by buying the dollars. This has since pushed the prices below the 1320 region where it continues to trade as of this writing. But the release of the NFP employment data from the US later in the day is likely to rock the markets and hence traders are advised caution.
The oil prices also fell lower yesterday but it managed to find some good support in the $60 region where it trades as of this writing. It remains to be seen whether the oil prices would be able to rebound and the strength and the weakness in the dollar could determine its next move.
The silver prices also continued to trade in a choppy manner, which it has been doing over the past few months and it is likely that this would continue in the short and medium term as well.