Gold prices finally managed to break through the 1262 region and they seem to be free of the region for now which gives the license to dream for the gold bulls. Not many would have given a chance to the gold prices when it was down in the dumps near the 1200 region and it was getting hit hard right, left and center. Many of the analysts felt that the gold prices would move much lower as there was some dollar strength around, which was due to the anticipation of the next rate hike from the Fed pretty soon. The gold prices were also hit by the strong euro which came about due to the tapering talk from the ECB.
Gold Prices Likely to Continue Higher
But since that time, we have seen the dollar getting hit all across the board as the economic data from the US has been weak and there is a lot of risk and uncertainty in the way that the Trump team is functioning. We have also seen the tapering talk die down a little bit over the last few days as the markets have come to the conclusion that something substantial would happen only after the summer. This has helped the gold prices recover and they have recovered quite smartly over the last few weeks and have steadily pushed higher and higher without much opposition. With the 1262 region being cleared off, we can now look at the 1280 region and maybe even as far high as 1300 region in the short term depending on how all the data from the US pan out during the course of the week.
Oil prices have also moved steadily higher and the prices have recovered by almost 20% since the time we said that the oil prices have hit the lows and that they are unlikely to come back to that region in the short and medium term. he trigger for the upmove was the tension in the Middle East but since that time, the OPEC has sent out some strong signals that they would do everything that they can to push the oil prices higher and they have also shown that they can. The region between $50-$52 is likely to see a low of selling and hence, we might see a bit of correction from that region which will only be an opportunity to go long again.
Silver prices have also followed the gold prices and though they dont seem to be as bullish as gold, they seem set to move towards the $17 region in the short term.
This article was originally posted on FX Empire
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