Gold Prices Fall Back To the Range before the Hike
By Daisy Joseph
The gold price remained almost steady in the past few months. On Friday, the market turned suddenly bullish due to the uncertainties after the US bombed the Syrian airbase. The higher risk encouraged the gold price to move up far greater, than 1266. The investors turned bullish, but the experts warned against the price hike. The close was monitored carefully because only then the bullish gains could be utilized.
On Monday, the gold price fell back in the range, as the risks were withdrawn. A weak NFP didn’t inhibit the dollar from climbing again. Investors settled back with a stronger dollar. In the past week too, the gold price climbed high and fell back again reaching below 1260.
The rise in gold prices is mainly due to the uncertainties surrounding the political condition of Syria and the involvement of the USA. Global investors pull back their funds from stocks and other investments and pump them into the gold market, when risky political incidents unfold. This is why the gold prices reach a sudden high and fall back to the normal range immediately after the risk is reduced.
When the price of gold is unable to push through the high range, the price will fall back to the lower range. As a result, more buyers will start selling gold to lock their financial position. As a result, the gold price will tumble down, further below 1200. Similar to gold, silver was unable to maintain its hold and it crashed below $18.
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