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Gold Prices Continue to Move Higher

By:
Colin First
Updated: Aug 10, 2017, 07:30 UTC

Gold prices continued to move higher for the second day yesterday and the prices are trading comfortably above $1270 as of this writing. The increase in

Comex Gold Brick

Gold prices continued to move higher for the second day yesterday and the prices are trading comfortably above $1270 as of this writing. The increase in the global risk has been the main driver for this leg of the bullish trend in the gold prices and this is in line with our forecast yesterday where we had mentioned that the bullish trend is here to stay for the short and medium term. The escalation of tension and the war of words between the US and North Korea has brought in a lot of jitters into the stock markets and this has led to a crash in the stock markets all around the world. In such times of global risk and uncertainty, the funds tend to get pulled out of the stock markets and invested into safe havens like gold, yen and swiss franc and that is the action that we have been seeing over the last couple of days.

Geopolitical Tensions Dominate Markets

During this period, we have seen the gold prices move higher by over $20 and it continues to look strong as the tension between the two countries shows no sign of abating. North Korea does have the habit of shooting off its mouth but this time, the threats seem to be much more serious and that is why the world leaders are taking it a bit more seriously this time and that is also the reason why we are seeing the stock markets correct and the gold prices shoot up. We expect this kind of bullish run in the gold prices to continue in the short term with the next resistance coming up in the 1280 region and then once the prices manage to break through this, we should see the prices aim for the 1300 region which would prove to be a tough nut to crack.

Gold Hourly
Gold Hourly

Oil prices also remained steadily bullish and so far, the corrections in the oil prices have been shallow. With all the focus and the attention on the geopolitical tensions caused by North Korea and the US, the oil prices have been away from the spotlight and that is the reason we are seeing the prices consolidate and range over the last couple of days. The crude oil inventory data from the US showed a much bigger draw than what was expected and this was a boost to the oil prices which has helped it to steady itself and this steady and bullish trading should continue in the short term.

Silver prices also continued to move higher over the last 24 hours and now they threaten to break through the key $17 region which should only be a matter of time if the tensions between North Korea and the US continue to dominate the headlines.

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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