Gold Continues Recovery

Gold prices continued to recover on the back of dollar weakness but the recovery has been slow and steady and we have not seen the gold prices sky rocket as some of the other instruments are doing. This shows that there is still some pressure on the gold investors and buyers and we are likely to see that continuing in the short term. We believe that the gold prices would move to the 1242 region where it is likely to be faced with a lot of selling and it would require a lot of effort from the bulls to push through this region if they want to continue the momentum. So far, they have managed to push the prices successfully as the dollar longs unwind all across the market but this dollar unwinding has also made some of the currencies and yields very tempting.

Gold Likely to See Choppy Trading

This is the reason why the gold prices have not moved higher as quickly as some would have expected it to do. The trading is likely to be choppy in this region and it is also likely that each and every piece of data from the different parts of the world are likely to be watched very closely for its impact on the gold prices. The bulls have done a good job so far in extricating the prices from its low below 1220 and managing to push it as far high as it is right now but we believe that the bulls are not yet out of danger.

Oil prices consolidated over the last 24 hours as it was caught in a tight range over $46. With the absence of any specific driving factors in the instrument since last week, the prices have been meandering along with no specific direction. We continue to believe that the risk is to the upside as far as the oil prices are concerned and we should be seeing the oil prices continue to make a slow and steady rise in the short and medium term. The weakness in the dollar does not seem to have had any impact on the oil prices so far and we believe that the situation will continue to be so in the short term.

Silver prices have also followed on , along with the gold prices and continue their recovery over the last 24 hours and this is set to continue in the short term as the dollar weakens across the board.