Gold Prices Await FOMC

Gold prices continued to trade between the 1260 and 1290 region, as it has been doing for several weeks now and we doubt whether this would be changing anytime in the short term. We have the FOMC meeting minutes later in the day which could bring in some volatility in the gold prices but it remains to be seen whether that would be enough for the prices to break through the range that we have been seeing over the last few weeks. The market would be looking forward to the Fed to see whether they have given any hints of the rate hike in December. We remain convinced that the Fed would be hiking rates next month but the market is yet to fully price in that, we believe.

Gold Prices Stuck in Range

But this is something that the market does not seem to have yet to come to terms fully and it remains to be seen what the Fed would think about it tonight. Irrespective of whether the minutes is hawkish or bearish, it would not change the stance of the Fed as far as hiking rates in December is concerned. The market would also be keeping an eye on what the Fed is planning to do in the first few months of next year and whether the Fed has a timeline in mind for further rate hikes.

As expected, the oil prices have begun to move higher as the prices shot through the $57 region and continue to move higher as of this writing. The oil prices seem to be following a specific plan over the last week or so as the prices broke through the $55 region and moved higher, then consolidated and corrected lower before beginning to move higher since the beginning of the week.  We continue to believe that the prices are moving towards the $60 region in the short term.

The silver prices also remain range bound and are likely to remain so for the short term as it follows the footsteps of gold as far as the prices are concerned.