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Gold Moves Steadily Higher

By:
Colin First
Published: May 23, 2017, 04:41 UTC

Gold prices moved higher during the course of the day yesterday though it continued to be within the specified range as it found some strong selling in

Gold Moves Steadily Higher

Gold prices moved higher during the course of the day yesterday though it continued to be within the specified range as it found some strong selling in the 1260 region. Credit needs to be given to the bulls for pushing the prices higher and continuing to keep the prices near the range highs as of this writing. The gold prices are expected to trade in a well bid manner for today as well as they have been pushed higher by the weakness in the dollar which seems to be the dominating theme in the markets for the past week or so. This has helped the gold prices to keep moving steadily higher and this is expected to continue in the short term as well.

Gold Expected to Do Well

With all the geopolitical tensions in the US and the fears and confusion over the Brexit process, the investors are doubtful of parking their money in risky assets like the stock markets and hence prefer to diversify their funds into safe assets like gold and silver. Also,these risks and fears are unlikely to go much far away from the markets anytime soon and hence, we expect the gold prices to continue to remain well bid in the short term. If the gold prices do manage to break clearly through the 1260-1270 region, then we expect the next stop in the bulls express to be in the 1298 region.

Gold Hourly
Gold Hourly

Oil prices also continued to remain high over the last 24 hours as the market eagerly awaits the announcements regarding the new production deal from the OPEC. There have been reports that the OPEC would announce a new production cut deal that would cut the production by a much larger amount than what the market anticipates. The reports also say that the deal would be extended through to a much longer time as well. These are just reports for now and nothing has been confirmed as yet but as is usual for the markets, the traders and the investors always tend to front run the announcements and thats why we are seeing the oil prices move higher and higher since yesterday and it trades just below $51 as of this writing.

Silver prices finally managed to break through the important hurdle at $17 and the prices trade above that mark as of this writing. With more and more funds moving into safer assets, we expect the silver prices to continue to move higher in the short term.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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