Geopolitical Tensions Rock Gold Prices

Gold prices have been consolidating over the last 24 hours and this is something that we had mentioned in our forecast yesterday as well. We had said that the gold prices are now in a very important region which would determine the trend in the short term for gold as it awaits to either make a breakout or correct lower. The gold prices continue to be high due to the fact that the global risks and uncertainties have not yet fully gone away. North Korea continues to remain on the horizon and there are even reports that say that they might launch a missile on September 9 which is their National Day and hence the markets continue to be a bit jittery and the investors and traders do not want to commit themselves on either side just yet.

Gold Prices Await North Korea

The market might just choose to wait till September 9 to see what happens before it chooses to pick a specific direction as far as the gold prices are concerned and this is likely to lead to some consolidation and ranging in the prices till that time. If nothing happens, we are likely to see the gold prices correct lower while if the tension begins to escalate in the region, we might see the gold prices push through higher into the 1350 region and beyond. Traders are likely to wait for the dust to settle before they take a position either way.

Oil prices also continued to trade in a strong manner and moved higher and now the oil prices trade comfortably above the $49 region as of this writing. The return of the demand, as the refineries came back online, has helped to move the oil prices back higher but it remains to be seen how long this will hold as the US gets set to be hit by Hurricane Irma and the destruction due to that might affect the oil prices once again in the short term. But the oil prices being between $55 and $60 is what would make the OPEC producers comfortable and we believe thats where the oil prices are headed in the medium term.

Silver prices also continued to trade near the highs of its range, following the cue from the gold prices and are expected to continue its consolidation and ranging near its highs over the next couple of days aleast, following a pattern similar to that of gold.