Gold Prices Consolidate At Highs

Gold prices continued to consolidate near their range highs as the markets began to stabilise somewhat on Friday on the back of weak CPI data from the US. The weak inflation numbers from the US would mean that it delays the next rate hike from the Fed even further and this is generally liked by the stock markets and thats why we saw the US stock indexes recover a bit on Friday. This removed the bid from the gold prices and that is why we are seeing this consolidation and ranging since that time. But the worst may not be over yet and we see the prices at a very important region and it remains to be seen whether there is a breakout or whether the prices are again going to move back into range in the short and medium term.

Gold Traders Wait for Breakout

This is a price range which gold has visited a few times already this year and every time it has failed to break through. That is why it is important to take profit over here and remain on the sidelines and watch the action. If there is a breakout in this region then we could see a very large move that would be target 1300 and further in the gold prices but if the global risks subside and the stock markets continue to recover, we might see the gold prices move back into the yearly range and then we are likely to be stuck in the large range for the medium term.

Oil prices also found the going tough despite the weakness in the dollar across the board on Friday. After making a brief trip over the $50 mark at the beginning of the last week, the oil prices have been struggling to move higher as they have corrected back below $50 and have since been trading below that price region Even the greater build up in the inventory from the US has done little to build up the oil prices and we see the prices trade below the $49 region as of this writing. But we continue to believe in the medium term bullish outlook for the oil prices and this is only likely to be a temporary halt in the progress of the prices towards the $55 region and further.