Gold Prices Struggle to Move Higher

The conditions in the market have been favorable for gold prices to shoot higher and it is indeed a surprise and a measure of selling in the region that we are seeing the Bulls struggling to take control of the market. We have seen a lot of uncertainty and confusion in the Eurozone markets which had led to a large drop in the euro and also in the stock markets but even then, gold prices have been unable to break through the $1305 region as of this writing.

Gold Prices In Range

Normally, prices would have breezed through this region and continued on a strong note due to the increase in global risk but we have not been seeing that and all that we have been seeing is the struggle from the bulls to build momentum. This shows that there is a lot of selling and this does not bode well for the gold bulls as this would only mean that the prices would begin to correct lower as the euro and the stock markets begin to stabilize and consolidate in the short term. In such a scenario, gold prices are likely to fall back into the $1280 region again.

Oil prices have bounced off from the support region and now trade just short of the $68 region over the last 24 hours and this is partly due to the strength of the dollar. Prices are expected to consolidate and we believe that the uptrend is still intact which would warrant a move beyond the $70 region in the coming days.

Silver prices continue to remain stable over the last 24 hours and we have been seeing the prices locked in a range between the $16 and the $17 regions for quite some time now. The silver prices have been less volatile but also less prone to corrections than the gold market since the beginning of the year.