The gold prices have made a call to the bottom of the spectrum near the 1300 region and have since fired back and now trade easily above the lows on the back of instability in the dollar and also increased danger all around the world which has beaten the stock markets very difficult. It is a well-known truth that during times when the prospects around the globe increase, the funds get picked out of the stock markets and forced into the gold market and that is what we have been witnessing in the last 24 hours. It has arrived at the right time for the gold buyers as it has helped the values to bounce from the lows.
Gold Bounces
The idea for the rebound can be put fairly on the fact that the US government has gone ahead and forced a tariff on the import of steel and aluminum. Though this movement is likely to hit the domestic car industry and this was one of the causes for the drop in the stocks of the car firms, the more important factor is the dilemma and the uncertainty that such a move is expected to bring along. China is required to respond in kind and this is likely to drive to an intensification in the trade war which is not suitable for anyone in the long run. It is this uncertainty that has created a fall in the stock exchanges. We believe that this would last in the short term.
The oil prices advanced to slide lower despite the gap in the dollar as the rough trading resumes in the oil market. As we have been saying all along, the main movements in the oil market are all made for and so what we are going to discuss in the short and medium-term is just the choppiness and passive moves that are based more on the incoming data and data rather than any particular major fundamentals.
The silver rates have also been selling in a strong stabilization mode over the past couple of weeks and this is expected to remain in the short interval between the $16 and the $17 regions.
