Gold Breaks Through $1200, As Predicted

Gold prices continued to move higher during the course of trading yesterday and so far today, as well as the strength of the dollar, shows signs of tiredness and weakening as well. We have been warning about this over the last couple of days as well as we are seeing increasing signs of the strength of the dollar wavering not only in the gold market but also in the other markets as well.

The gold prices moved towards the $1210 region where they faced a bit of selling and have since corrected lower back towards the $1200 region as of this writing. It is likely that the rise will be slow and steady and would be backed by some solid fundamentals and hence it is likely to take some time to take root.

Gold Prices Still Strong

The dollar strength has been waning and the data that is going to be released for the rest of the week is likely to have a big say in the short term trend as far as the dollar is concerned. This could bring in a lot of volatility in the gold prices and if as expected, the data comes in weak and the dollar becomes weak in trading, then it is likely that the gold bulls would be spurred even further in the short term and then we could see the prices continue their climb in a faster manner. Even if the dollar strengthens, for now, we have seen that the 1180 region has been a strong support for the gold prices to bounce off from.

The oil prices continue to consolidate near their highs and it appears as though the oil prices are also priming themselves for a breakout. But the highs of the range are nearby and it is important for the bulls to reign themselves in, for now, wait for the breakout higher before they start moving in.