Gold Prices Slow and Steady

Gold prices have not been doing much for the last few weeks and we saw more of the same yesterday as well. In the commodity markets, it is the time for range traders as most of the commodities continue to trade within a range, some small and some large as well and this is good for the range traders as all that they need to do is trade the edges of the range with a tight stop loss. That’s what we have been seeing over the last few weeks and we saw the gold prices being choppy yesterday as the traders are still not sure which direction the prices are ultimately likely to move and even if they do, they will have to wait and see whether that is enough to break the range.

Gold in Range

The volatility is expected to arrive sometime next week as all eyes of the market are now focussed on the Fed and what it is likely to do in March and in the upcoming months as well, as far as the rate hikes are concerned. The market expects the Fed to hike rates next week and with most of the important data for the month already out of the way, the focus is squarely and fully on the prices of gold only. It remains to be seen whether the Fed would be able to handle the increasing expectations of the market and be able to feed the dollar bulls enough.

The oil prices have also been ranging and consolidating for most of the last 24 hours and the ranges get tighter and tighter every day. This only shows lack of liquidity and direction which is likely to be the norm in the short and medium term as the traders come to terms with the changed scenario.

Silver prices also take the cue from the gold market and continue to trade in a slow and steady manner for much of the last 24 hours and like gold, this is likely to continue for the short term.