Gold Prices in Tight Range Ahead of NFP

The gold prices continue to flounder in the lows of its range as the market awaits the NFP data later in the day today. The dollar strength has been ominous and obvious for everyone to see and this is beginning to take its toll on the prices of gold. Also, the NFP data has been weak over the last month and it is anticipated that the data would be better this month and if that happens, then we should see further strength in the dollar which would only place a lot more pressure on the gold prices. We have to wait and see whether that happens in the evening but for now, we can expect the prices to continue to consolidate below the $1320 region. The prices have been ranging between the $1300 and the $1360 region and it is quite possible that the market would be looking for a breakout through this range as it must have got fed up with the range over the last several months.

Oil Prices Steady

The oil prices have also been trading in a slow manner over the last 24 hours as the traders seem to be looking for some stability. It is unlikely that the prices would be affected too much by the relative strength or weakness of the dollar in the short and medium term and even if there is an impact from the NFP later on today, it is likely to be short lived only. We should see the oil prices continue to be buoyant in the short and medium term as well.

The silver prices also continue to trade within a range over the last 24 hours in line with the general trend in the commodities market. This is also likely to be impacted by the release of the US data later in the day though we believe that it is unlikely that the silver prices are ready to break out just yet, in any direction.