Gold Continues to Consolidate and Warn Traders

As we have been mentioning in our forecasts over the last few days, god prices continue to consolidate near the highs of its range and the same trend is expected to continue over the next few days as well. It is to the credit of the gold bulls that they have managed to hold off the dollar advance for so long and it remains to be seen how much longer they would be able to hold this.

Where Next for Gold?

This seems to be the main question for the gold traders and the price action over the last few days has not given any specific indication on the direction that the gold prices are likely to take in the short and medium term as well. Though the gold has been able to repel the dollar advances and this would have normally pointed to a continuation of the uptrend in the gold prices, what should be considered is the fact that the dollar is expected to gain even further and with Yellen pointing out multiple rate hikes for the year with the first one maybe as soon as March itself, it could well be a great time for the dollar bulls in the medium term. So, with this in mind, it remains to be seen how long the gold bulls can hold on as the support at around the 1220 region holds on. We would advice the traders to remain on the sidelines and watch for a breakout of the range before jumping in.

Oil, Well, Consolidates !

Oil continues to do what it has been doing over the last few weeks, which is to consolidate. The instrument should be a great one to trade for those who are looking for short term and day trades as it continues to trade within a tight range for several weeks now and there has been no indication of a breakout in either direction so far and so we believe that this consolidation phase will continue. The US inventory continues to show a build and this should concern the producers and the oil bulls but so far, they have not shown any signs of buckling under this pressure.

Silver also consolidated over the past 24 hours and like gold, there is not much to look forward to unless the range is broken.