Gold Prices Hug on to Support.
Gold prices are under pressure due to multiple reasons as lack of demand, growth of bitcoin market and strength of dollar weigh on the prices.
The gold prices continued to trade under pressure but the prices seem to be hugging on to the support region of 1248 so far and this has been the case on Friday and today as well. It remains to be seen how long it would be able to hold on to this region as we have a slew of data and major economic events for the rest of the week and each one of these is likely to have a large influence on the markets. On Friday, the gold prices came under strong pressure from the dollar as the incoming data from the US continued to be supportive of the dollar. The NFP data was released on Friday and it came in stronger than expected which helped the dollar to gain strength all across the board.
Gold Under Pressure
For sometime it did look as though the support region would be broken and that the gold prices would be looking much farther below but none of that happened as the prices managed to recover but so far, the bounce in the prices has been very weak and does not inspire too much of confidence going forward. As we had mentioned in our forecast last week, the gold market has been stunned by the huge interest in the bitcoin market which provides another opportunity for traders and investors to look for large returns. This has ensured that some funds are moved out of the gold market and with the gold prices already under pressure from lack of demand and the strength of the dollar, it has only made the situation worse for gold bulls.