Gold Prices In Important Region
The gold prices stabilised to an extent during trading yesterday as the dollar rebound stalled all across the markets. But the gold prices do not seem to be out of the woods as yet and they do not seem to have made up their mind on which way they would want to go in the short term. The weakness in the gold markets continues to persist and this is unlikely to go away anytime soon as we move into the last day of the month. There are not many fundamental drivers during this time of the month and hence we can expect some slow trading for today as well. Next week is likely to bring in a lot of volatility with a range of news from the US and other regions also getting lined up for release.
Gold Likely to Bounce
The gold prices have been steady at best over the last 24 hours as the global risks also seem to have stabilised during this period and we find that the stock markets have been picking up traction and this has led to the transfer of funds from the gold markets to the stock markets and this kind of flow is likely to continue as long as the risks are low and we find the stock markets moving up. We believe that the gold prices are now in an important region with some large support nearby and hence it would not be a surprise to see a bounce from here in the gold prices in the short term. But for the medium term, we expect the dollar to continue to strengthen which should keep the gold prices under pressure.
Oil prices corrected lower during trading yesterday which was only to be expected as the prices were close to an important resistance region between $53 and $55 and so a correction lat this stage in the middle of some strong selling is quite justifiable. The prices continue to hold clearly and easily above the $50 region which should continue to keep the bulls interested in the short and medium term as well. As we have been saying for sometime now, any correction in the oil prices should be viewed as an opportunity to buy more.
Silver markets also saw some consolidation and ranging during the course of trading yesterday and this is likely to last for the short term. Like gold, we expect some bounce in the silver prices in this period which should keep the bulls interested.
This article was originally posted on FX Empire