Gold Prices Continue to Consolidate

The gold prices have been chopping around since Friday and they continue to do so at this point of time around the 1330 region with no specific direction. As we have been mentioning over the last few forecasts, there has not been much fundamental news around and with the demand for gold remaining stable, the gold prices have tended to stagnate and caught in the range between the 1225 and the 1245 regions and this is likely to continue till the end of the month. We are at that time of the month when the news dries up all around the globe and unless there are some fundamental drivers, we are likely to see the prices stagnating and that is what we have been seeing in the gold markets.

Gold Prices Stagnate

It is likely that the gold prices would continue to spend its time within the range. The move higher has been done on thin volume but we have seen the bulls being able to carry on their momentum during this month as well which speaks volumes of the way that the dollar has been faring. But with the take over of the Fed Chair by Powell and with the rate hikes also looming ahead, we expect the focus to shift back to the dollar which should help the dollar regain back some of its demand. The reaction of the gold bulls if and when this happens should be interesting though for now, consolidation is the name of the game.

Oil prices continue to trade in a slow manner below the $64 region but we believe that it is only going to be a matter of time before it starts moving higher. OPEC and Russia have agreed, over the weekend, to continue with the production cut till the end of the year and this should help the bull run that we have been seeing in the oil market.

Silver prices have also ranged over the last few days and they are expected to continue to do so in the short term, on the lines of what the gold market is doing.