The bearish gold prices:
The LED Ticker tape showed moderately low gold prices in the US markets. In fact, not just gold, but also silver has consolidated its position in the bearish territory. And while the US Dow Jones Industrial Average was on a record high, with traders and investors rejoicing amidst Christmas, the prices of the precious metals have hit the lowest backslides that very week. The last price gold and silver price downfalls shown on the LED ticker tape display were those of the February Comex gold- $6.10 an ounce at $1170.40, and March Comex silver- $0.072 at $16.825 an ounce.
Effect of gold prices on the US market:
The gold prices do affect the US dollar index notches. And though the market had been strongly affected post the solid losses in gold and silver prices, the dollar index are healthier than that seen for the first time after gold and silver had hit the bearish territory, indicating chances of US market recovery.
The effect of OPEC in the market:
Along with the US gold and silver prices, the world has also witnessed another shocking fall of metal prices- the price of crude oil. The crude oil prices were on a 6-week high and have seen a sharp backslide in the prices after that. However, while many may think that the OPEC is responsible for the fall owing to their cutting down on the oil productions, the recent reports have revealed that the OPEL members are pumping always pumping crude oils as much as possible. Thus, the OPEC may not be blamed for the diseased oil prices.
The monetary policy meeting of the European Central Bank:
Two important meeting have been scheduled to discuss these backslides. One is the monetary policy meeting of the European Central Bank, and the other is FOMC meeting of the Federal Reserve. Both meetings are arguably the most important market events of this year’s December, though, the ECB is of more interest across the world. The result of these meetings can reflect upon the bearish gold and crude oil prices.
For the monetary policy meetings of the European Central Bank (ECB), decisions are taken regarding interest rates on the Main Refinancing Operations (MROs), and the interest rates on marginal lending facility and deposit facility. Decisions regarding persisting interest rates of the ECB and net asset purchases are also taken.
Gold prices for the coming year:
With bearish gold prices, speculations have already started regarding what can be the expected gold prices on the LED Stock Ticker Display. The upcoming February bears solid overall advantage in terms of gold prices technically. The prices have been trending towards the lower end for the past five months, before this downfall. The next upside near-term Bull price objective is to provide a close above solid technical resistance at the high of $1200.00. Bear’s next term down slide price breakout objective is closing prices below solid technical support at $1150.00.