Gold Prices Make Labored Move Higher

Gold prices moved higher on Friday but the move was labored and not as quick as one would have expected. The move higher was largely based on the weakness in the dollar which had come about due to the comments from Yellen on the sidelines of the Jackson Hole meeting. Yellen did not touch upon the monetary policy, when a part of the market did expect her to. By doing this, she once again failed to support the dollar and it seems that the Fed is fine with the weakness in the dollar. This signal was understood by the market as it began to sell of the dollar across the board and this led to the gold prices moving up through the 1290 region. But the volatility before that, when the gold prices shot down to 1275 for a brief while would have taken out a lot of stop losses and this made the move up, after the move down, a lot more meaningful.

Gold Looking for 1300 and Beyond

It appears as though the move down to 1275 was designed to clear out the stop losses before the move up but whether that is true, remains to be seen. As for now, the gold prices are trading well above the 1290 region and are moving higher in a slow and steady manner. They are likely to face a lot of selling in the region and even more in the 1300 region which marks the high of the latest range. It is going to take quite a bit of effort from the bulls to clear this region but with the dollar marked for more weakness in the short term, a move towards 1310 should not come as a surprise.

Oil prices have been holding steady as they have been consolidating and ranging over the last few days. The choppiness in the dollar strength seems to have little impact on the oil prices. Also, cyclone Harvey which has been bettering the Texas area and which is expected to affect oil supply, has also had little impact on the oil prices so far though we believe that, once the real effect of the cyclone is known, then we are likely to see the oil prices have some volatility depending on how the supply lines were affected.

Silver prices have also followed the gold prices as usual and have been trading slowly and steadily. They have moved above the $17 region and rest safely above it as of this writing and are expected to continue to be bullish in the short term.