Gold Prices Rebound But Still in Range

Gold prices move higher during the course of the last 24 hours in a continuation of the ranging and the consolidation that we have been seeing between the large range that the gold prices have been in since the beginning of the year. During this period, the 1300 region had been a source of strong buying and this has helped the prices to continue to rebound and recover during this period with the region around 1360 witnessing some strong selling. A combination of these has been holding the prices for the past few months and this is what we saw yesterday as well. The price rebounded due to the weakness in the dollar that was seen across the markets yesterday.

Gold Prices Rebound

The dollar weakened as reports continued to emerge of impending tariff plans for Chinese goods and this has increased the risk and uncertainty around the world and has led investors to remove funds from the stock markets and into the safe havens like gold and silver. This is one of the reasons for the dollar to weaken but the anticipation over the Fed meeting later in the week is likely to keep the weakening of the dollar under control for the short term. The market anticipates a rate hike this week and if that happens, it is likely to keep the dollar buoyed.

The oil prices continued to move higher on the back of weakness in the dollar but we believe that even if the dollar were to weaken to a great extent, we expect the oil prices to remain within the larger range for the medium term as it is in the right price band for the producers and the consumers as well.

Silver prices have also been in a range between $16 and $17 for much of the last few weeks and as we have been saying all this weeks, it is likely to continue to be so in the coming weeks as well.