Gold Prices Continue to Rise Steadily

Gold prices corrected a bit, late in the day as the dollar began to gain some strength across the board. For a long time yesterday, the gold prices held steady and they even made a move up towards their first line of resistance around the 1263 region, which we have mentioned yesterday. This was on the back of some dollar weakness that had been brought about as Trump delayed his tax cut plan. He had announced that some major tax cuts were on their way and if things had been on plan, then we should have been seeing the plan this week or the next.

Gold Prices Wax and Wane

But there was some hitch which forced him to delay the tax cuts. But instead, he chose to focus on infrastructure spending, which was a favorite topic for the markets during his campaign, and the fact that he was considering to begin those plans very soon was considered as dollar positive and the dollar took off late in the evening which forced the gold prices to beat a retreat back below 1260 and the prices trade below 1255 as of this writing.

We believe that this correction might only be temporary for gold and we should see the gold bulls coming right back quite soon and we still believe that the gold bulls have a minimum target of 1270 before they rethink about their next plan of action. Unless we see something changing dramatically over the next few days with respect to the dollar strength, we would expect the gold prices to reach their target in due course of time. Looking ahead to today, we have the Prelim GDP and the consumer confidence data from the US but we believe neither of them is likely to change the direction of gold anytime soon.

Oil Remains Subdued

Oil prices corrected a wee bit, mainly on the back of the dollar strength rather than anything fundamental changing, with regard to oil. As is usual, we expect the oil prices to continue to trade steadily and consolidate and range for the rest of the day, something that it has been doing ever since the beginning of the year, making it a very boring instrument to trade for long term traders.

Silver prices also tried to push through yesterday on the back of some dollar weakness in the early part of the day but like gold, they were beaten back towards late evening as the dollar bulls came back strong. We expect the silver prices to remain buoyant for the next few days atleast.