Gold Prices Continue to Range

The gold prices continue to range and chop around with no specific direction and this has been the case since the beginning of the week. We had pointed this out earlier in the week and had said that this kind of price action was likely to continue in the short term and this is what has been going during this period. The prices continue to range between the 1260 and 1290 region over the last couple of weeks as the dollar strength waxes and wanes. It is still not clear whether the Fed would hike rates in December and though we believe so, the market is not yet ready to price in that fully. This is the reason for the prices chopping around as every remotely positive data from the US leads to a strengthening of the dollar and vice versa.

Gold Prices in Tight Range

This is likely to continue during the course of the day though the thinning of liquidity as we approach the weekend could lead to some additional volatility during the end of the day which the traders should guard against. For now, it is clear that the gold prices are clearly caught within a tight range and there is not much that is to drive the prices in a specific direction. The demand for gold, that generally picks up during this time of the year is also yet to show up and this is also weighing on the gold prices.

Oil prices have also reduced themselves to a trickle as they range with a very tight price range in the $55 region over the past few days. We had said at the beginning of the week that there was likely to be some correction towards the $55 region in the oil prices and thats what we are seeing now. There is likely to be continued consolidation in the oil prices before the next leg higher. There are no signs of a reversal in the prices as yet and so the next leg higher should cary the prices towards $60.

The silver prices have also been trading in a tight range on either side of $17 and we had lamented about this tight range trading a couple of days back. This is set to continue for the rest of the day as the lack of fundamental drivers in the silver and gold market has led to this state.