Gold Prices Continue to Chop Around

Gold prices continued to chop around near their highs and it was a very volatile day of trading in the markets over the last 24 hours. The lack of fundamentals and the lack of economic data ensured that the market and the prices were left to the mercy of the traders and what they think about the prices and this led to a very choppy bit of trading yesterday. We saw the day begin with the prices moving towards the 1310 region as the dollar strengthened across the board. But this lasted only for a few hours as the prices staged a sudden reversal on the back of reports that the purchase of US debt by China could be curtailed. This led to a weakening in the dollar and caused a spurt higher in the gold prices.

Gold Traders In Wait and Watch Mode

The gold prices pushed through the 1320 region and went ahead into the 1325 region but this move has been quickly reversed over the next few hours and we now see the prices back below the 1320 region as of this writing. The situation still remains fluid with the traders not being able to decide on whether they need to be short or long. The price action over the last couple of weeks would suggest that the traders should be going long on every correction with the expectation that the bull run would continue. But the fact that there has not been much fundamentals that support such a move should keep the bulls wary. The dollar has also been holding steady since the beginning of the week which has also helped to keep the gold prices in a leash.

The oil prices continue to move higher with the prices above the $63 region as the inventory data from the US has shown a larger draw than what was expected. This confirms the direction and the fact that the uptrend is still intact which should now spur the prices towards $65 and beyond.

Silver prices continue to chop around the $17 region and as we have been saying over the last few forecasts, they seem to be following the gold price action and hence the traders should be looking in that direction for trading silver.