Commodities Lack Luster As Investors Focus On Stocks
In the past few days, gold price has undergone some chances, after the Easter holiday in London. The price tends to reach the 1265 mark which is not favorable for the bulls. The market is gearing up for the bull run. The gold prices were high at 1290 and it came crashing down just above 1280. It is mainly because of the strengthening of the US dollar.
Trump’s election as the President of the United States has helped to boost the stock market as the investors were pumped with hopes. He had promised that tax cuts would be introduced in 2017, which encouraged the bulls to rage. The US stock markets closed at never-before-seen high values. As a result, investors pulled their funds out of commodities such as gold to invest in the stocks. The possibility of better returns has encouraged investors to rely more on the stock market. The strengthening of dollar along with renewed interest in the stock market has pushed the gold price down.
The oil prices continue to fluctuate between $53 and $55. For a short period, experts predict that the oil prices will stay in this range. Range traders could easily benefit from the current oil prices as economists say that the oil price won’t travel much further than the current range.
Similar to gold, silver prices also endured correction on the lower side. The silver price is hovering over the $18.2 region and it is not expected to rise again in the immediate future.