Gold Prices Looking to Test Highs of Range

The gold prices seem to have completed their move lower towards the lows of their range and now have begun their journey towards the highs. There does not seem to be anything fundamentally associated with these kinds of moves as there is not much news around. Also, the risk sentiment remains high as is evident from the way that the stock markets have been moving higher. The dollar has also managed to stay steady during this period and hence it is indeed a surprise that the prices have begun to move this way and that. The prices seem to be driven more by the trade flows and market positioning rather than being moved by any fundamentals and that is the reason why we had mentioned in our forecast yesterday that we need to watch out for the prices to play out in the range.

Gold Prices Move Towards Range Highs

As part of that, the prices have started their journey higher and likely to face a lot of selling in the 1345 region which would then lead to a battle between the bears and the bulls. Those traders who got on the bandwagon at the lows of the range would also be looking to exit at the highs and this is likely to lead to a good 2 way battle between the different sets of traders. It is the price action there that is set to decide whether the the prices would get back into range or break higher.

Oil prices continue to consolidate between the $63 and the $64 region over the last few days and the case has been the same over the last 24 hours as well. With the oil producers set to continue their production cut till the end of the year, th

e end of the bull run is not yet in sight and this is likely to keep driving the prices higher through the $65 region and beyond.

Silver prices have not joined the gold prices in this move higher and they continue their ranging and consolidation as they trade slightly above the $17 region as of this writing.