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Market Snapshot – Gold Prices Correct

Colin First
Forex Daily Outlook – June 27, 2018

Gold Prices Correct

The gold prices have dropped over the last 24 hours after making a huge effort to finally break through the range that it has been trading in. The gold market has been trading in a large range between the $1300 and the $1360 regions over the last few months and despite many attempts to break through either side of the range during this period, the attempts have been largely unsuccessful and there has been a growing feeling that it is only the rate hikes from the Fed that is likely to bring in enough volatility to push the boundaries of the range. But over the last few days, there has been an escalation of the global risks in the form of the Syrian conflict and also the trade war between China and the US and this has led to a situation where we are seeing the demand for gold as a safe haven is increasing on a daily basis. This is the reason for the break higher but that break higher has been heavily sold into which means that the prices are now back into the original range with little outlook for any breakout at this point of time.

Cryptos Make Huge Gains

On the crypto side, it has been an excellent past 24 hours in the market as most of the cryptos have had gains of over 10% and this includes both the BTC and the ETH prices as well. The bulls would hope to build on the momentum and keep pushing the prices higher in these markets as the rise higher through the various resistances of $7400 and $7800 begins to attract more and more traders in the hope of making some solid gains. This will only push the demand even higher which will help the prices in their latest bullish leg. There seems to be some purpose and momentum in this run higher but it remains to be seen how best the bulls would be able to make use of this.

This article was originally posted on FX Empire