Gold Prices Consolidate and Wait for Next Turn

Gold prices consolidated and ranged for a large part of the day yesterday as global fears continued to mount yesterday and over the weekend and this helped to keep a bid under the gold prices and helped to keep it close to its range highs and above 1205. We have the speech from the UK PM May later on today where she is expected to spell out more details of the Brexit process and also make it clear that it is going to be a hard Brexit where the UK will exit the eurozone for good and not half here and half there. It depends on how the markets interpret the speech and if it believes that the process that is spelt out will increase the risk seven more than usual, then we can see the gold prices shoot up even further and finally get released from the strong resistance around the 1200 region. But if it is going to be more of a sell the rumor and buy the fact kind of move for the pound, then we can see the global fears recede and the gold prices could then correct back below 1200. All in all, the gold prices are in a crucial region and we will wait to see which way the gold prices take.

Oil prices continued to trade steady and near their range highs for the second day today as the agreement between the oil producers continued to hold. But we did have Saudi Arabia stating that the production cut would be only for a period of 6 months and it is confusion like these that is likely to derail the agreement and keep the oil prices under check. We had mentioned that it would be difficult for the agreement to hold for long considering all the geopolitical factors and already we have started hearing murmurs from the different sides. This has not affected the oil prices so far but if these murmurs become full fledged moves and speeches, then we could see the oil prices correct. Even now, the oil prices have not been able to progress towards $60 due to these reasons and also due to the fact that the investory data is yet to show any signs of decrease.

Silver prices are traded in a tight and consolidated range near their range highs as they wait for a break out in either direction depending on the global risks. Traders can use the moves in gold prices to gauge the movement in silver and trade accordingly.