Gold Prices Continue to be Choppy

Gold prices consolidated during the course of the day yesterday as the choppy trading witnessed on Friday seems to have confused the traders and the investors and they are not sure on which way they would want to go. We did see the gold prices make a small and slow move higher but this was immediately met by a lot of selling which forced the gold prices to correct back lower and it trades below the 1290 region as of this writing. It is quite difficult to gauge the way that the gold prices are going to move in the short term but with the dollar continuing to look weak, we favor the upside in this instrument and we could see the 1300 being tested pretty soon. Traders need to be careful at this level as the trading and the price action seems to be very choppy at the moment and with the rise and fall of the prices on Friday, it has confused those who follow the charts and has hence made decision making even more difficult.

Gold Still Looking to Move Up

The global risks and the uncertainties surrounding the dollar and the pound are simply too much and we believe that this is likely to keep the currencies and the respective markets under pressure and when that happens, the people involved and the investors would be forced to diversify into safe haven assets like gold and silver and this is the reason why we are bullish about the gold prices despite the choppy trading. We expect the choppy trading to continue in the short term but traders would be well advised to use any kind of significant correction as a means of adding on to their longs on gold.

Oil prices dropped by more than 2% yesterday, basically reversing the entire gains that it had managed to make on Friday. This basically nullified any of the bullish signs that sprang up in the oil prices and has since put off many traders in this instrument. It remains to be seen what effect this will have on the prices in the short term but we continue to be bullish on the oil prices in the short term.

Silver prices also had some choppy trading on either side of $17 over the last 24 hours and it awaits further direction from somewhere so that it can make a decisive move.