Gold Prices Push Through $1300

Gold prices continue to move higher as the tension in the Korean region continues to escalate over the past few days. The gold prices have also been helped higher by the weakness in the dollar during the same period and the combination of these two has helped the gold market to push through the 1300 region and look to trade in a strong manner in the short term. The gold prices are likely to continue to stay strong as long as the threat from North Korea exists. Over the last few days, we have had the tension escalate due to the possibility of a military exercise from the US and South Korea and due to continuing threatening statements from the US. North Korea has also failed to back down and seems to be planning for a missile launch of its own and all these have led the investors to seek safe havens to invest in.

Gold Gains Strength on Dollar Weakness

The dollar has also been on the backfoot over the last few days due to the choppy incoming data from the US. The retail sales data came in stronger on Friday but the CPI inflation data came in weaker which continues the trend of mixed data from the US. The gold prices have been helped due to this weakness as well and it looks to continue its move upwards as the tension in Korea and the dollar weakness are likely to continue for the short term.

Oil prices have finally broken through the $52 region since this morning and have been trading pretty strongly. The supply and production concerns continue to haunt the market and this has helped to push the oil prices higher during the course of the last few days and this is also expected to continue in the short term. As usual, we can expect some strong resistance in the region between $53 and $55 over the short term but we continue to maintain our target of $55 for the medium term.

Silver prices have also been moving higher over the last few days, in line with the gold prices, as the tension in the Korean region and the weakness of the dollar has led to investors searching for safe havens like gold and silver to invest in. The instrument now trades just short of the $17.5 region but it is likely to be only a matter of time before this price region is broken through.