Gold Prices Buoyed by Heightened Risk

The gold prices made a tilt at the range highs yesterday but then the prices began to correct lower and now the prices trade close to the highs but the momentum seems to be lost for now. The move higher in the gold prices has come about due to the increase in the global risks as the threat of a heightened way in Syria looms. This is going to keep the gold prices buoyant and whether this would be enough for the gold prices to break through the long held range would depend on how much the conflict in Syria escalates. Right now, we are seeing signs of more and more countries joining and escalating the conflict and more details would emerge over the coming hours.

Gold Pushes at Highs

Though it is apparent that this escalation would not serve any purpose for the people over there, the politics that is involved does not know all this. This is expected to dominate the market headlines in the coming days and hence the gold prices would be kept buoyed as more and more investors and traders push their funds into gold in the hope that it would serve as a safe haven in times of high risk as we are seeing now. We are likely to see the prices move to the highs of the range once again but the traders would have to wait and watch whether that move would have the required momentum to break through the range.

Oil prices have also broken higher and unlike the gold market, the oil prices have been able to hold on to their break and this means that the prices would be well on their way towards the $70 region in due course of time. The breakout has been brought about by the increase in risk as the signs of a war loom.

The silver prices have also been buoyed by the increase in global risk but as is usual, we are seeing that the momentum in the silver prices are lagging behind that of gold and this is set to continue in the short term.