Gold Prices Shoot Higher

The gold prices broke through higher on the back of some serious dollar weakness and it now trades near the top of its range as of this writing and it seems as though the dollar is now at a crucial stage which is likely to determine its medium term trend. The dollar has been hit hard over the last 24 hours and this is the opportunity that the gold bulls have been waiting for and they used this to full effect to push the prices higher through the 1340 region and now we are seeing the gold prices trade just short of the 1360 region as of this writing and looking good for more. The dollar is under pressure due to the mixed economic data that came in yesterday.

Gold Prices Gain on Dollar Weakness

The inflation data came in stronger than expected but the retail sales data came in weaker and this is something that the market did not expect. The doollar bulls were hoping for some strong data in both segments so that it would push the Fed to think about accelerating its rate hikes in the coming months but now that expectation has been belied at this point of time. This has led to some dollar selling across the board and this pushed the gold prices higher which is now back at the highs of its range. It remains to be seen whether the dollar bulls would make a comeback here or whether we would see the gold continue to move higher from here.

The oil prices seem to have completed their period of correction as they spurted higher on the back of dollar weakness over the past 24 hours. The prices pushed through the $60 region and now trade comfortably above that as of this writing. As we have been saying over the last couple of days, the downside is limited for the oil prices below $60.

Silver prices are trading just short of the $17 region and unlike the gold prices, they have not been able to make a strong run as yet and continue to remain weak at the foundation and demand level which makes it susceptible to losses.