Gold Prices Likely to Continue Higher

We had been mentioning in our forecasts over the last couple of days of how the gold prices continue to look strong despite the fact that the dollar has been gaining in strength and despite the return to full liquidity of the market. We had said that the move higher had happened on low volume and hence could be primed for reversal but nothing of that sort has happened as yet which means that it is likely that the prices move higher. Based on this, we saw the gold prices move higher during the course of trading yesterday as the dollar was generally on the backfoot. The euro got a boost from the hawkish ECB minutes and this pushed the dollar against the wall and the gold bulls have been able to piggy back on this move so far.

Gold Pushes Through $1320

We said yesterday that the fact that the prices have not fallen as yet could be bullish for the gold prices and we are likely to see another bullish leg in the gold market anytime soon. This goes against convention and fundamentals and it is indeed a surprise that the gold prices are here with the stock markets making all time highs around the world, the crypt industry doing decently well and the demand for gold having hit a plateau over the last year or so but then, this is the market and generally there is not much logic into what goes on in the markets in the short term.

The oil prices continue to stabilise and consolidate and we are seeing the prices continue to trade above the $63 region as of this writing and as we have been saying all along, it looks good for more.

The silver prices have also pushed through the $17 region and continue to trade in strong manner, following the footsteps of the gold market.