Gold Prices Likely to Remain Low

The gold prices have been consolidating near the lows of the range as the region around $1325 acts as resistance for now. The gold prices are clearly on the backfoot and they seem ready to fall on any hint of strength in dollar. We have been mentioning about this in many of our forecasts where we have said that the gold prices continue to be on shaky ground. The prices have risen too much too quickly and this is bound to hurt the gold prices sooner than later. Also a large part of the rise has been made on low volume and hence the traders and the bulls are likely to give up on it on even the slightest event of any doubt.

Gold Prices Consolidate

The prices are likely to consolidate between the 1300 and the 1325 regions for the short term. As we look ahead to the coming week, we believe that the dollar is likely to continue to gain in the short and medium term and this is likely to bring in a lot of pressure on the gold prices during this period. We would not be surprised if the gold prices continue their weakness and break through the 1300 region to move lower and this could bring the lows of the range from last year into the picture. The rise has been quick but the fall has also been quick so far, with just a slight hint of strength from the dollar. This shows the weak ground on which gold prices exist.

The oil prices have fallen to the $60 region and the fall is probably one of the biggest in the market that we have seen over the last few months, which have been punctuated by corrections that were smaller than this. This shows that the bull run is in jeopardy but what this also means is that we are likely to see the oil prices range between the $60 and $70 regions in the medium term as this price range seems to satisfy all involved.

Silver prices have also been under pressure over the last few days as they follow the gold prices lower. This is likely to be the theme in the silver markets for the short term.