Gold Continues Its Slow Trading

The gold prices continue to lounge about the lows over the past 24 hours as the market seems to be waiting in anticipation of the NFP data later in the week. The market would also be looking forward to the FOMC meeting minutes later in the month so that it can learn more about what the Fed is thinking about the further rate hikes and the timelines for the same. With the NFP data having disappointed in a big manner last month, the dollar bulls would be hoping for a stronger report this month to ensure that the US economy is back on track far as generating jobs is concerned and if and when that happens, we should see the gold prices coming under even more pressure.

The oil prices have been consolidating above the $67 region over the last few days and the bullish drive that we have been seeing in the oil markets continues as we write this. There has been no sign of a let up as yet and with the oil producers determined to carry on with their production cut atleast till the end of the year, the uptrend still seems to be pretty much intact at this time. We are yet to see any signs of a change in trend and hence we believe that the prices would be well on their way to $70 and beyond in due course of time. The inventory data from the US has also been showing a downward trend in recent times which only adds to the expectation that the production cut is beginning to do its trick and this would only spur on the prices even more.

The silver prices have been locked in a range for many months now. There was a period of few days when the prices did breach above the $17 mark but that move was met with some strong selling at that time and since then, we have seen the prices drop down below the $17 region which marks its re-entry back into the original range. This is set to continue for the short and medium term as well.