Gold Continues to Rocket Higher

Gold prices continue to rocket higher defying gravity and fundamentals as the dollar takes a hiding all across the board. There has not been much attention being paid to the gold markets as all the focus is on the euro and the dollar and this lack of focus has been utilised well by the gold bulls in pushing the prices higher since the middle of last month. While the rise from last month could be dismissed as a coincidence as the dollar got weaker under low volume, it was also expected that the gold prices would move lower and the dollar would rebound once the market is back to full volume but that has not happened so far. The dollar continues to be on the backfoot as incoming data is choppy and the Trump administration continues to deal with the economic and political issues which are tormenting his team.

Gold Prices Push Through $1340

This has added the pressure on the dollar and it was another bullish day on Friday for the gold markets as the prices shot through the resistance near the 1325 region and moved through the 1340 region during the course of the day and continues to trade above this price region as of this writing. The prices are now closing in on another major resistance in the 1355-1360 region but so far, there have been not been any signs of a reversal and the dollar continues to weaken. This means that this price region should come under threat pretty quickly and any break through this region is likely to fuel the price rise even further.

Oil prices continued to move higher and it trades above the $64 region as of this writing. As we have been mentioning over the last couple of weeks, it appears only to be a matter of time before the $65 region is breached and this with no signs of any reversal, we are looking beyond this region as well. There have been calls for a continuation of the production cut and if this continues, then we are likely to see the prices continue to move higher in the medium term.

Silver prices trade comfortably above the $17 region and it is likely that the price rise that we are seeing in this market would continue in the short and medium term as the market follows the example of the gold market.