Gold Prices Continue to be Buoyant

Gold prices dipped during early trading yesterday but after that, it has managed to recover back and it now trades in the 1340 region as of this writing. The trading in the gold markets over the last 24 hours can be best explained as  choppy and there has not been much momentum on either side. As we have been saying many times over, it is likely that the market is waiting for the employment data in the form of NFP that is scheduled to be released on Friday and that would provide the short term direction that the market has been looking for. We have also seen the prices locked in a range for many weeks now and we believe that the traders would be desperately looking for something that would help them bring about a break out.

Gold Prices Rise

There are still no signs of which direction the breakout, if and when it arrives, is going to happen. If the employment data comes out weak, it is going to make the decision for the next rate hike that much more difficult and this could lead the dollar to weaken. Seasonally also, April is a period when the dollar is on the backfoot and the data from later in the week will reveal whether we are going to continue to see this as of this month as well.

Oil prices moved slightly lower into the $63 region yesterday and as we have been saying many times over, this is likely to be the range for the oil markets and the prices are expected to be range bound for the short and medium term as well.

Silver prices have also been following the gold prices higher though like the gold market, the silver prices have also been trading within the $16 to $17 range and this is also expected to continue for the market which seems to have become a very poor cousin of the gold market.