Gold Continues at its Range Highs

Gold prices continued to move in a sideways manner with the market not in any intention to move in any specific direction as yet. We are seeing the dollar becoming steady since the beginning of the week and though this has helped the dollar to gain against some currencies, it has not made much headway against the gold prices and other commodities as well. The gold market has held up much better than what was expected after the move higher on low volume during the end of December. This points to further gains in the gold prices though, again, fundamentally we do not believe that gold is as yet in a position to move even higher.

Gold Prices Hover Around $1320

The cycle of higher interest rates from the various banks should begin to weigh on the gold prices in the short and medium term and hence it is indeed a surprise that the gold prices have risen so high during this period despite the interest rates going up in some major countries like the US and the UK. There has also not been any great increase in the demand for gold which continues to remain stable and hence any explanation for the move higher in the prices should consider this fact as well. We continue to believe that this valuation for the gold market at this juncture is something that is not sustainable for long but with the dollar on the backfoot, the gold bulls have had a chance to keep pushing the prices higher and higher.

Oil prices continue to trade strongly and move higher over the last 24 hours as the long uptrend that has been going on for around 6 months now, shows no signs of abating as yet. The oil prices continue to trade above the $62 region as of this writing and it is likely that the prices would continue, with not much of a correction, towards the $65 region in due course of time.

The silver prices also continued to trade in a strong manner and trades above the $17 region following the footsteps of the gold market.