Gold Prices Move Near Range Highs
Gold prices have been consolidating over the last 24 hours as they near the highs from last year. It is normal for the bull run to slow down as it comes close to a region of high selling and it is also likely that some part of the market is beginning to believe that the rally is a bit over extended at this point of time and hence it is likely that there could be a correction lower. That is why the buyers are not committing themselves fully into the bull run as yet which is causing the bull run to stall at this point of time. If this continues, it is likely that the prices might have to dip lower towards the 1325 region so that it can pick up more buyers which would give a fillip to the bull run and push the prices higher in due course of time.
Gold Bulls Looking Tired
The gold prices have gained mainly due to the weakness in the dollar and not due to any special demand or any other fundamental factors. This is the reason why the move higher has not been fully convincing for many traders as they believe that once the dollar begins to reverse, then the whole move higher could come crashing down. Also, most of the move higher has happened on days of low volume, with the bulk of the move happening during the holiday towards the end of December. This has raised doubts about the strength of this move overall but the gold bulls do not seem to care much about the same as they have continued to push the prices higher.
The oil prices also continue to trade near the highs of its range as the prices push through the $64 region and head towards the target of $65. As we keep saying, there does not seem to be any signs of a top as yet and so we could well be seeing the oil prices moving towards the $70 in due course of time.
The silver prices also trade near the highs of its range and trade comfortably above the $17 region at this point of time though a correction may be due pretty soon just to collect more buyers along the way.
This article was originally posted on FX Empire