Gold and Oil Prices Trade in a Buoyant Manner

Gold prices continued to trade in a strong manner during the last 24 hours and there has been not much of a correction so far. It has to be said that the prices are now in a very crucial resistance region and the way that the prices react in this region is likely to determine the direction for the gold prices in the short term. The prices have shot up basically due to the fact that the threat from North Korea continues to exist and no one seems to know what they are going to do next. This risk and uncertainty has helped the gold prices to move higher and the stock markets to move lower. Though the stock markets managed to recover a bit yesterday, the gold prices continue to hold at the highs of the range as the weakness in the dollar also seems to be helping.

Gold Prices Continue at Highs

As we have said above, this is an important price region for gold and a break through this region is likely to push the prices towards 1350 and beyond. But there does seem to be a good chance of a reversal in the gold prices if the risks continue to recede and if we also see the dollar making a recovery in the short term. There is a bunch of data from the US that will be released towards the end of the week and these could have an impact on the day that the dollar is viewed by the market and this could, in turn, have a bearing on the gold prices.

Oil prices also shot higher yesterday, which is something that was going to be only a matter of time for it to happen. We had mentioned as such in our forecasts last week where we had said that the oil prices were lower due to the decrease in demand owing to shutting down of the refineries in the US following the hurricane. We had said that this was going to be temporary and that the prices would recover once the refineries came back up and thats what has been happening over the last 24 hours as some of the refineries have come back online and this has helped the oil prices move back $49 for a brief while and it continues to trade in a strong manner.

Silver prices have also been trading near their range highs, just short of the $18 region over the last 24 hours, taking the cue from the gold prices which have also been buoyant due to the flight to safety of funds following the tension in the Koreas.