Gold Prices Chop Around Range Highs

Gold prices have been generally choppy over the last 24 hours, as has been the case in general with the rest of the markets so far. The prices have struggled to make much headway through the highs of the range around the 1345 region and hence have been bouncing up and down during the last 24 hours making life difficult for those who have been trying to make sense of all the price action and the direction that the prices are likely to take in the short term. As we had mentioned in our forecast yesterday, we have seen that there are doubts beginning to appear in the minds of the traders with respect to the speed at which the prices have moved up over the last few weeks and whether the price rise would be sustained in due course of time.

Gold Prices Choppy

This feeling has led some of the traders to begin to take profits at the range highs and that is one of the reasons why we are seeing choppy action in the markets over the last 24 hours. The dollar strength has also been waxing and waning during this period and this has also contributed to the choppy action in the prices. It remains to be seen how the situation unravels as we await the action on the fundamental side to pick up in course of time. Once this happens, the way ahead would be much clearer.

Oil prices have also been trading in a pretty subdued manner over the last 24 hours as they fell below the $64 region but this is likely to be a short term move lower and we would be expecting the prices to vault above the $64 region within a day or 2. The prices have been influenced by the production and the inventory data that have been coming in and we should see the prices pick up quickly and continue with their uptrend in the short term.

The silver prices have also been choppy, taking the cue from the gold market but as of now, they trade above the $17 region but should weaken if and when the gold prices move lower.