Gold prices continued to move steadily higher, something which has been happening for the past 3 weeks and it is no longer a surprise. The prices have been moving slow and steady and that is one of the reasons why there has not been any shock and awe with regard to its movement. The euro has also been moving at almost the same speed higher but the euro seems to be getting all the attention as the volatility in the currency is much higher due to the pullbacks, corrections and then the bounces. On the other hand, the pullbacks and the corrections in the gold prices have been pretty much low and have been very shallow and that is the reason why the steady rise in the gold prices have escaped market attention so far.
Gold Is Slow and Steady
Also, the gold prices have now crossed the important resistance region of 1262 and have continued to move higher which only points to further gains in the short term. Ideally, we should be looking at 1280 and then 1300 as the targets for the short term but with a large amount of news slated to be released towards the end of the week, it is better for the traders to be on their toes. It is likely that the investors may bail out on first hints of trouble in the bullish trend as they are likely to be sitting on a lot of profit. So, if there are any signs of reversal, it is likely to be a quick and large one and that is why it is important to be on the trigger when the news events roll in towards the end of the week.
Oil prices have also basically followed the gold prices but for entirely different reasons. The oil prices continue to be strong and have finally broke through the $50 region over the last 24 hours. The oil producing countries have made it clear, in no uncertain terms, that they would like to see the prices higher and they have also shown that they would do anything in their powers to get the prices higher. This was enough signal for the markets to push the prices higher and thats what they have been doing. Like the gold prices, the correction in the oil prices have also been few and far between and we believe that the prices would continue to move higher though there is likely to be some resistance between now and the time the prices crosses $53.
Silver prices have been lagging behind the gold prices as far as this upmove is concerned. Though the corrections in silver have also been few and far between, the upmove has been quite slow and does not have the momentum that the uptrend in gold is having. The silver prices are expected to face some stiff resistance in the $17 region which could lead to a correction.
This article was originally posted on FX Empire
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