Yahoo Finance Market Snapshot – Gold Prices Continue to be Weak
Gold Prices Steady
The gold prices have remained pretty much flat over the last couple of days as the prices are caught in a tight range between the $1280 and the $1300 regions for the time being and it is unlikely that the prices would move too far from this region for the short term as the fundamentals are not yet set right to push the prices in any direction. That is the reason for the consolidation though, as we have said many times earlier, we have seen that the drop below the $1305 region, which led to the break through the lows of some long term ranging, has led the transfer of control to the bears. This would mean that the gold prices would continue to be low and under pressure as the dollar continues on its cycle of strength. This is expected to continue in the medium term and with this and the rate hike cycle in full flow, it is only natural for the gold prices to remain low.
Stock Markets Steady as Well
The markets are also looking a bit weak over the last couple of days though most of the global markets have been in the green over this period. There is growing fear, once again, of a global trade war breaking out and though there has not been much followup as far as these expectations are concerned, there is a worry that this could turn out to be true in the medium term. If that does happen, then we could see more and more countries beginning to get involved and this is going to get very messy during this period. This is something that the various major powers of the world would like to avoid and it is in this background that the G7 meeting is going to be held though it is generally expected that there would not be any follow through on such threats.
This article was originally posted on FX Empire
