Gold Prices Near Range Lows

The gold prices continued to trade within their range and in a weak manner as the prices came under the pressure due to a strong dollar. While the story was about a weak dollar last week, there has been a rebound in the dollar this week and this has been seen all across the markets. This kind of strengthening and weakening in the dollar had led the gold prices to move towards the highs of its range during last week and that move has since reversed during the course of this week and now we see the gold prices near the lows of its range over the last 24 hours. This is likely to continue for the short term and this does not provide too much of an opportunity for any of the long term traders.

Gold In Range

The long term traders and investors would like to see some large moves but that is unlikely to happen unless there is a breakout in either direction of this range. We would have expected a weakening in the gold prices and a break through the lows of the range as the Fed begins to hike rates but despite the fact that the Fed has hiked rates in March, we are not seeing any weakness in the gold prices. One of the major reasons for that is the hike in the risks around the globe which has happened due to the rise in geopolitical tensions and as long as they exist beneath the surface the gold prices should remain well bid.

The oil prices have also corrected lower during the last few days but they still trade in a buoyant manner. As we have been saying many times in the past, we expect the prices to be bound by the $70 region on the upside in the medium term as this is the price range that most producers and consumers would be happy with.

The silver prices also continue to trade near the lows of its range and this is likely to continue in the short term.