Gold Prices Continue in Range

Gold prices continued to trade and consolidate in the range between the 1345 and 1360 regions over the last few days. We had mentioned this in our forecasts over the last few days where we had said that this sort of consolidation and ranging was likely to happen for the short term as the dollar bulls and bears battle it out for control of the dollar. Over the past couple of days, we have seen some strength in the dollar all across the board and that has forced the gold prices to move back into the lows of the range in the 1345 region. The prices are expected to find some good support in this region over the next few days as the market and the traders wait for the end of the month.

Gold Prices Stagnant

The end of the month would be marked by some strong trade flows as the traders position themselves for the new month ahead and this is likely to see some volatility in the gold prices. But the attention of the market over the short term would be on the dollar and the incoming data later in the week. We are scheduled to have the NFP released later in the week and this is expected to bring in a lot of volatility. Some part of the market expects the next rate hike from the Fed to happen in March and if the data this week comes out strong, then that rate hike would be that much closer. So, it is likely to be a volatile week ahead.

Oil prices have dipped towards the $66 region on profit taking and some strength from the dollar which is seen all across the markets. We are seeing some signs of fatigue from the bulls and this is likely to affect the prices and bring in a correction towards the $65 region. The prices seem set to move towards the $70 region but the price action suggests that it might take longer than expected.

Silver prices have also been trading in a solid manner over the last few days and the steady trading continues today as well. The prices seem to be caught in a range between the $17 and $17.5 regions for now.