Gold Prices Correct But Find Some Support

Gold prices dropped during the course of the day yesterday but managed to recover towards the end of the day and closed in a strong manner. But much of the day was spent in pushing the gold prices lower towards the 1320 region and for a while, it appeared as though the move down would continue for some time and lead to a total reversal but the gold bulls managed to make a stand towards the end of the day which helped the gold market to close in a better position.

Gold Prices Still Choppy

The gold prices weakened during the course of the day as the stock markets continued to recover across the world. This was due to the fact that there were no risk events in any part of the world and considering the times, this in itself was a huge relief for the investors who then went about pulling funds out of the safe havens like gold and invested the funds into the stock markets. This was the reason for the gold prices moving lower but as the US session began, we saw some weakness in the dollar which helped the gold prices to recover and now it trades in the 1330 region as of this writing and the gold prices seem to have got back their mojo though the stock markets around the world continue to trade in a strong manner as of today. If the recovery in the gold prices continues, then we could be seeing the prices moving back into the 1340 and 1350 region in the short term.

Oil prices consolidated and ranged over the past 24 hours and it continues to sit comfortable above the $48 region as of this writing. The market is still in a wait and watch mode to see how much of the demand and supply has been affected in the US due to the hurricanes and while that evaluation is being done, we can see the prices consolidate The hurricanes seem to have brought in less destruction that what was expected and this has led to some support for the oil prices in the short and medium term and we could see the oil prices challenging the $50 region in the short term.

Silver prices also recovered during the course of the day yesterday but they continue to trade below the $18 region as of this writing and expected to consolidate and range for the short term.