Gold Continues to Trade Within the Larger Range

The gold prices continue to trade within their larger range in a form of consolidation and this was expected to happen over the last 24 hours as the dollar has not had much to do during this period. This also marked the first day of the week when the volatility becomes low due to the lack of any major news or developments. As we head towards the middle of the week, we expect the action to pick up but so far, there has not been any signs of a breakout in any specific direction. The gold prices seem to be stuck in a large range between the $1300 and $1360 region and the prices have been trading in this region over the last few days with no specific direction.

Gold Prices Steady

The prices have been quite sensitive to the dollar and its strength and that is why the volatility continues to remain high despite the fact that the pair has been trading in a tight range all this while. The dollar is set to gain the medium term as the Fed has indicated a rate hike in March and many of the Fed members continue to favor some quick rate hikes so that the monetary policy is in touch with the economy. Looking ahead to the day, we have the new Fed Chief Powell testifying and this is likely to bring in some additional volatility in the gold prices as he is likely to air his views on the economy and the monetary policy.

The oil prices continue to trade in a pretty strong manner over the last 24 hours as the prices head towards the $64 region and on to the highs of the range. We expect the prices to trade themselves within the large range between the $60 and $70 region and thats why we had suggested a bounce in the prices when the prices did go below the $60 region for a brief while a few days ago.

The silver prices continue to trade in a weak manner and the prices have been spending their time between the $16 and the $17 regions ever since the beginning of the year.