Gold Prices Continue Steady Rise

Gold prices continue to trade strongly since Friday and we believe that this trend is likely to continue for a day or two more as the prices approach the next crucial region of 1260 where it is likely to be faced with a lot of selling. The prices have been in a strong and steady upmove over the last several days since the time when it made its correction towards the 1204 region a week or so back. At that time, it appeared to be the end of the bull run for the gold prices as it could not bounce even when the dollar was weak, But since that point of time, we have seen the dollar continue to get battered and with the ECB also hinting that there might be a delay in the tapering, we are seeing the gold prices make a comeback.

Gold Slow and Steady

In fact, the ECB has been trying desperately hard to make the market believe that the tapering would not be happening anytime soon but it is clear from the incoming data from the Eurozone and also the other fundamentals, that the tapering is around the corner. This has pushed the euro and the yields higher and higher and that was one of the reasons why the gold prices has fallen as the investors pulled out of gold and sought to park their funds in yields and bonds. But the ECB seeking to delay tapering, it has now become clear that tapering is likely to happen only after the summer and that is the reason that gold and silver are in fad again. This is likely to continue in the short term.

The oil prices have corrected lower since Friday as supply concerns continue to haunt the market. We had also mentioned about this correction in our forecast last Friday as we had said that the prices were near their range highs and so we believed that it was time for some correction in the prices after the long and steady buildup in them over the last couple of weeks. We continue to believe in the bullish picture in the medium and long term and over the weekend, we had news that Saudi Arabia had cut down on its exports to the US, which should help the bullish picture in the long run.

Silver prices also continued to trade in a buoyant manner, in line with the gold prices, and this is believed to continue in the short term.