Gold Prices Trade Near Highs of Weekly Range

Gold prices continued to trade near the highs of its weekly range and closed near the same over last week. The prices have not been very volatile during this period and continue to trade in a tight manner as the lack of fundamentals to drive the markets in any specific direction is telling. The gold market has to deal with such a scenario over the next couple of weeks and the situation is the same for the other markets as well as the year winds down. As we move into the last couple of weeks of the year, we are likely to see the volatility and the liquidity going down and this is going to lead to some slow movements in the markets during this period which would make the markets dull.

Gold Likely to Remain Buoyed

The only point of interest for this week could be the tax reform bill in the US which is likely to get passed in the first half of the week. This should lead to a strengthening of the dollar and the stock indices in the US should begin to move higher but we doubt whether it would have a major impact on the gold markets. We expect the gold prices to continue to hug on to the 1250 region for now and we should see some solid consolidation and range happening around this region. With the euphoria around the BTC market also taking a temporary break, we are likely to see some of the funds returning back to the gold market which should keep the prices buoyed.

Oil prices continue to trade in a strong and steady manner and it has been so for the past few weeks. We do not expect any major change in the markets over the next couple of weeks. It has been seen clearly that the oil prices seem to be little impacted by the changes in the dollar strength and so, with the lack of fundamental drivers in the oil markets, we are likely to see the prices continue to trade within a tight range.

Silver prices have also been trading near the highs of its weekly range and it is likely to continue in the short term as this market is also going to see some tight ranging and consolidation in the coming weeks.