The gold prices move into the highs of its range and a battle is expected to ensue in the short term between the bulls and the bears
Gold prices have continued higher over the last 24 hours as the gold bulls have made full use of the opportunity to push the prices higher as the dollar weakened across the board yesterday. This dollar weakness is expected to continue in the short term and this should lead the prices higher into thr $1345 region which is where a battle is expected to take place between the bulls and the bears for control. A clean break through this region should lead the prices into the 1360 region in due course of time. The turnaround in the prices of gold since the middle of December has been mammoth.
Only in the middle of December, it was expected that the gold prices would crash further as they were moving lower into the mid 1200s region. The Fed had just hiked rates and many of the major economic powers around the world had ended their round of rate cuts and rate holds and had started on their journey of rate hikes. Under these circumstances, it was expected that the gold prices woud struggle as the funds were expected to flow out of gold and into the markets in these regions. But that has not happened so far. What started as a correction in times of low volume has now moved into a full blown bull trend which is unlikely to reverse anytime in the short term.
The oil prices have also been consolidating over the last 24 hours. Over the last 6 months or so when the bull trend in the oil market has been going on, the oil prices have not been impacted in any manner by the strength or the weakness of the dollar. Yesterday the prices rose towards the $65 region but then corrected lower from just short of that region and it now trades above $64 as of this writing.
Silver prices have not had much of a move and they seem to be lagging behind the gold prices for many days now. There does not seem to be much demand for silver at this point of time.
Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.