Gold Prices Continue to Remain Buoyant

Gold prices seem to have found some good support in the 1247 region which seems to be holding up the prices so far. The market has been seeing some solid dollar strength over the past couple of days and this has led to a correction in the gold prices from its range highs around the 1260 region. We had expected a much larger correction in the gold prices, considering how quickly it has been moving up, but the gold bulls have been very supportive of the prices and have ensured that the corrections have been few and far between and have also ensured that the corrections are shallow so far. This is a measure of how strong the buying has been in gold and this is likely to be the scenario in the short term as well.

Gold Prices Seen Stable

Despite the several developments in different parts of the world, especially with the settling down of the Trump administration and the invocation of Article 50, none of the se developments have sough to calm the markets down and the global fears and risks continue to exist. This has kept the investors on edge and we believe that they feel comfortable in investing a large part of their funds in safe assets like gold in the hope of some decent returns in a safe manner in the medium and long term and this buying is one of the reasons why the gold prices continue to remain buoyant despite the waxing and waning of the dollar strength.

Oil prices rose by about a dollar yesterday as the oil inventory data from the US was released yesterday and though it showed a decent build up, the amount of increase was still way below what was expected and this helped to boost the confidence in the buyers. As the supply and inventory dries up, the demand continues to remain the same and this narrowing of the gap between the supply and the demand would naturally drive up the prices and thats what we saw yesterday. We had anticipated this in our forecast yesterday but we still believe that the region betwee $50-$50.5 would be a tough one for the bulls to crack and that region should mark the range highs in the short term.

Silver prices also continued to remain buoyant, in the lines of the gold prices, as they continued to trade above the $18 mark and they are likely to continue to be supported in the short term.