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Gold Prices Continue Consolidation

By:
Colin First
Updated: Jul 13, 2017, 07:19 UTC

Gold prices have been seeing some consolidation over the last 24 hours as the bulls struggle to push the prices through the 1220 region and that is the

Gold

Gold prices have been seeing some consolidation over the last 24 hours as the bulls struggle to push the prices through the 1220 region and that is the region that we are trading in, as of now. The dollar is on the backfoot across the board as the political troubles of Trump and his son continue to dominate the markets and there does not seem to be any end to that show at this point of time.

Gold Looks Weak

Yesterday, the market was focussed on the speech from Yellen and the traders were looking for some hawkish comments from here but the lack of any such comments led to a round of dollar selling which may continue today as well. This has helped the gold prices to recover from the low 1200s and it continues to look strong. But, we believe that this region is likely to hold the prices for the short term and we should see the gold prices move down again towards the 1200 region in the short term.

Gold Hourly
Gold Hourly

We have some more data from the US in the form of PPI data and the testimony of Yellen continues for today as well and we should wait and see whether any of these has an impact on the markets. The Trump team would like to keep the dollar weak in the short and medium term and the lack of hawkishness from the Fed could be part of this plan as well but this is something that only time will tell.

Oil prices also continued to consolidate and though there was a brief visit above the $46 mark, it was quickly met by a lot of selling which has caused the prices to correct below $46 where it sits as of this writing. We can safely expect this kind of choppy trading to continue for the short term as the traders wait for some direction. This is likely to either come from the production and inventory data or from the Middle East but till that arrives, choppy trading will be the order of the day.

Silver prices have also moved ahead, in line with the gold prices, and they trade just below the crucial resistance region at $16 as of this writing and it has to be said that the prices have been hugging this region for quite some time now. We believe that the $16 region would hold the prices for now which would mean that the silver prices could resume their downtrend anytime soon.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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