Gold Prices Shoot Through $1300

The gold prices continued to move higher and ended the year at the highs of its range. What should encourage the bulls is the fact that the gold prices closed the year above the 1300 region which should pave the way for more gains in the coming days. We had been doubtful on whether the prices would be able to break through the strong selling in the 1295 to 1300 region but the fact that they managed to breeze through this region with not much of resistance should be a source of encouragement for the bulls. On the other hand, it should be a note of caution for the traders as well as the price rise has happened during a period of low liquidity and there has not been much fundamentals to drive the prices higher.

Gold Prices Buoyant

We have been seeing the dollar on the backfoot all across the board over the last couple of weeks and this has happened despite the fact that there has been no major fundamental or economic changes during this period. Of course, the threat from North Korea continues to exist but the markets have already priced in that threat and so we cannot attribute the weakness of the dollar to this factor. This is why the move higher seems to be on thin ground and we feel that the move could get reversed once the liquidity begins to build up. We expect the traders to start coming back to their desks after the long holiday, during the course of the week and it is only during this period that the liquidity is expected to pick up and it would be interesting to see what the traders think about the high prices of gold when they come back.

The oil prices have continued to move higher and trade just short of the $61 region as of this writing. The bulls seem to have achieved their mid term target of $60 and for those following us, it would be good to know that we caught the move when the prices were at their lows near the $45 region. Now that the investors and producers have achieved their main target, it would be interesting to see how the new trading year would pan out for the oil prices as we await further direction.

Silver prices are trading in the $17 region as they have been buoyed by the demand for safe haven instruments. Though the rise in the silver prices has not been as profound as seen in the gold market, the push higher has helped to keep the prices steady.