The gold prices have gone higher slowly and steadily as a combination of the weakness, and an increase in risk in the dollar has given some well-needed break for the gold markets in the last 24 hours. We have observed the prices move through the $1320 mark last week but so fat the market seems to have been reluctant to break higher. It appears there is high level of resistance at around $1320 level which the market is not ready to break on the current stage. Further weakness in the USDcould add much needed catalyst to facilitate a breakout but as of Monday morning everything seems to be calm and volumes have eased considerably.
As of now, no one is sure how the circumstances in the Middle East is going to intensify over the next few days and till there is an assurance about that, the gold prices are going to trade buoyantly.
Also, due to the weak inflation data that we saw from the US yesterday, the dollar has declined during this period. This maintains the movement of weak data from the United States, and it could put some pressure on the Fed as it sits down and ponders the increase in rate in the nearest future.
Weak employment and weak inflation are not suitable for any economy, and this is the predicament that the Fed has to face in the short and medium term.
The cryptocurrency markets are now in a bearish state for the short term as the prices have plummeted during this period and now we see Bitcoin prices trade in the $8500 zone over the past few hours.
This is a zone of support for the prices, and as far as the bulls can hold this zone, they should be able to maintain the control they have over the market. However, if they fail to hold this region, then it is possible that the prices are going to drop further in this week with the potential to reach long-term support at $6500, which could add to the negative sentiment on the cryptocurrency market.