Gold Prices Continue Higher

Gold prices have been moving higher during the course of the last 2 days as the risk and uncertainty around the world has been having an influence on the markets around the world. The risks have been triggered by the decision of the US government to impose tariffs on the import of Chinese goods and this has led to the possibility of a trade war. The Chinese have also responded with some of their own tariffs and we have each side threatening the other that this would only be the start of what is likely to be a prolonged trade war. We have been saying many times that if and when such a thing happens, no one is likely to win and it is only the entire trade balance of the world that is likely to be upset.

Gold Higher

And if and when that happens, it is going to be something difficult for the global economic powers to manage at that point of time. With such uncertain times and risks ahead, it is going to be a challenge for the market to deal with such a development as we have been seeing the investors pull out their funds from the stocks in a hurry and looking to invest it in gold and other safe havens. That is the reason why we have been seeing the gold prices shoot up over the last few days and now they eye the $1350 region and beyond. They are fast nearing the strong resistance region and it looks like they have some momentum on their side now.

This momentum seems to be there in the oil markets as well as we have been seeing the prices threaten the highs of the range over the last couple of days due to the weakness in the dollar and also due to some risks that have been posed by reports of missiles in the skies of Saudi Arabia. The situation is fluid at this point of time and we believe that this is likely to keep the oil prices buoyant.

The silver prices have also been buoyed a bit by the weakness in the dollar and due to their safe haven status but the prices continue to lag the gold markets in general.