Gold Prices Remain Near Highs

Gold prices have been trading near the highs of its range over the last 24 hours and it has finally managed to successfully complete it move to the highs during this period. As we have been saying many times over the last few weeks, we believe that the gold prices are still caught in a range between the 1300 and the 1360 regions and this ranging has been continuing since the beginning of the year.

Gold Higher

Though the prices have been threatening to break through either side over the last few weeks, neither the bulls nor the bears have been able to generate enough momentum on either side for the prices to break through. The latest move higher has been fuelled by threats and fears of a global trade war breaking out between the major economic powers as each one of them follows a policy to protect their national interests. Wat they fail to understand is tha fact that the inward focus that they seem to be having at this point of time is only going to act against them in due course of time which would mean that they are likely to face even more difficult times. This has led to funds being pulled out of risky assets like stock and being invested in gold. Over the last 24 hours, there has been respite to the growing risk sentiment but it remains to be seen how long this would be.

The oil prices have also been trying to break through the highs of its range trying to make full use of the weakness in the dollar but that has not happened so far. We believe that it is only going to be a matter of time before that happens and then we should see the prices move towards the $70 region.

The silver prices have also been buoyed by the uptrend in the gold prices though the moves have been pretty much subdued.