Gold Prices Reach Crucial LevelThe gold prices are approaching a region of resistance when the market is waiting for news from the US
The gold prices continued to move higher over the last 24 hours on the back of some dollar weakness but it now seems to be in a price region which is going to be crucial to determine its direction for the short term and the medium term as well. It has been a good recovery so far from the gold bulls who have managed to hold the 1300 region and bring about a bounce through some strong buying over the last few days but it is important for them to continue the momentum. Much of the move higher has happened over the last couple of days when the market has been dull and devoid of much fundamental and economic news and hence this move is likely to now have much trust.
Prices Near Resistance
There does not seem to be much fundamentals attached to this move higher and hence the question mark of whether this move higher is a correction of the downtrend or a reversal continues to remain. That is likely to get resolved over the next couple of days as a slew of data is going to be released from the US over this period. This includes the CPI and the PPI data as also the retail sales data from the US which should give us a good indicator of how strong the economy is. If the data continues to be strong, then we should see the gold prices begin its downtrend again.
The oil prices continue to trade below the $60 region but as we mentioned yesterday, we do not see much more downside in the days to come as this is the price region that the producers and the consumers would be happy with and so we can expect the producers to do the needful to keep the prices around this region in the medium term.
Silver prices were not able to share the joy that was seen in the gold markets yesterday and as a result, we see the prices continue to trade in the $16.5 region as of this writing. The silver markets are no longer in focus over the last few months and that is why we are seeing the demand moving lower and the prices being unable to make a run higher despite dollar weakness.