The commodity market has been caught in a tight range over the last couple of weeks. This has affected the gold prices as well which have been ranging between the 1280 region and the 1260 region during this period. Though there have been a few efforts to break through this range, they have not gone far and have led to the prices coming back into the range pretty quickly. Even yesterday, we saw the gold prices trying to push through the 1280 region but they faced a lot of selling in that region which has since helped the prices to move lower and trade in the 1275 region as of this writing. We believe that the gold prices are likely to correct and consolidate within this range in the short term.
Gold Prices Caught Between 1260 and 1280
This is reflective of the stock markets which have also gone into a consolidative and corrective mode over the last few days. There have not been much fundamental drivers in this market and the economic data coming in from various countries have also been only choppy at best. This has led to a bit of uncertainty among the traders who are yet not sure in which way to push the prices. The traders continue to await firm indication from the Fed on whether they would go ahead with the rate hike in December and in the absence of hints from the Fed, they look forward to the data but so far, there has been no confirmation of the same from either.
Oil prices also continue to consolidate and range within a tight price region below $57 as the oil bulls await further correction so that they could load on the buys for the next bullish leg higher. It remains to be seen how far the correction would go or whether there would be a correction at all.
Silver prices have also been trading in a tight range as the market, especially the commodity markets, have gone into a sleep mode. We await the speeches from different central bank leaders later in the day today to see whether they can give any direction to the market.
This article was originally posted on FX Empire
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