Tight Ranging Market in Commodities

Gold prices have been consolidating in a tight range over the last 24 hours as the weakness in the dollar seen across the board has not had much of an impact on the gold prices so far. This weakness in the dollar has been there since the beginning of the week but it has been profound over the last 24 hours due to the fact that the tax reform implementation, which had proposed a tax cut for the corporates, has now been delayed by a year for the corporates alone. This was a setback to the corporates who were looking for some tax savings. This has led to some pressure on the dollar which has helped to keep the stock markets also under pressure and the gold prices buoyed. This is likely to last for the short term.

Gold Prices Trade Within Range

The gold prices are now locked in tight trading between the 1280 and 1290 region in a week when the volatility has been pretty low across the markets. Though the lack of news could be attributed as one of the reasons for the loss of volatility, the fact that the prices have been moving so little when all the traders are at their desks and it is not a holiday period in any part of the world, is kind of baffling. For today, we have a bank holiday in the US which is only going to further remove any kind of volatility that we have been seeing in the markets over the last 24 hours.

The oil prices have also been trading within a tight range over the last couple of days after having moved a large deal due to the reports of a crisis in Saudi Arabia, which is one of the biggest producers of oil. The crisis now seems to be under control, as per reports, and this has helped the oil prices to stabilise and we may also see a bit of a correction in the prices before the next leg higher.

Silver prices have been been locked in a tight range on either side of the $17 region as the market looks forward to the end of what has been a difficult week for the long term traders who have been forced to trade in a market with very low volatility throughout the week. There have not been any major opportunities for trading this week and hence it may be a relief for the traders that this week is finally ending.