Gold prices got the trading week off on the right foot as the price of gold rose several dollars per ounce today. Gold rise even as stocks traded higher. Gold prices have been trending higher since retesting the $1183 area recently. The gold bulls are starting to gain some momentum, and there are likely more shorts that will get squeezed out before the rally is over.
Investors still seem apprehensive following the volatility seen in recent weeks. Higher volatility and lower stock prices could potentially work in gold's favor. The gold market has several other things in play that may help the bulls right now. In its last remarks, the FOMC sounded a lot more dovish than it did previously. The Fed stated that there are numerous risks to the economy right now including a stronger dollar. The Fed also said that short term rates would remain low for some time. In addition, St. Louis Federal Reserve Bank President James Bullard stated last week that perhaps the Fed should hold off on its plan to end its QE program. This is also considered dovish, and may be one of the reasons stocks were able to turn around late last week.
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Showing posts with label gold prices. Show all posts
Showing posts with label gold prices. Show all posts
Tuesday, 21 October 2014
Monday, 21 July 2014
Gold Prices Likely to Remain under Pressure
Gold prices are likely to remain under pressure in the near future mainly due to talks of possible reduction of prevailing high duties and charges, industry experts point out. The price of the yellow metal has been on the negative side since the start of the year. Strong rupee, surging equity market, high duties and import restrictions influenced the sentiments, they said.
“Surging equities and a steady dollar are concerns which may drag gold prices down in the near future as it had shifted investor attention to other asset classes. Also, concerns over hiking the interest rates may further diminish the safe haven appeal of gold,” said C P Krishnan, whole time director, Geojit Comtrade.
However, recuperating from its previous year’s sharp drop, gold and silver witnessed a sharp recovery during the first half of the year.
“Surging equities and a steady dollar are concerns which may drag gold prices down in the near future as it had shifted investor attention to other asset classes. Also, concerns over hiking the interest rates may further diminish the safe haven appeal of gold,” said C P Krishnan, whole time director, Geojit Comtrade.
However, recuperating from its previous year’s sharp drop, gold and silver witnessed a sharp recovery during the first half of the year.
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