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Gold Prices Shoot Higher

By:
Colin First
Updated: Jul 4, 2018, 09:04 UTC

Gold prices have shot higher over the last 24 hours and it now trades comfortably above the 1250 region as of this writing. This is partly due to the fact that the dollar strength has given away a bit over this period and this opportunity has been made full use of by the gold market.

Gold

The risks around the world continue to exist and this has been impacting the markets as well as this was seen in the US stock indices which fell yesterday. This has also helped the gold markets to move higher but with the dollar also being considered as a safe haven in the markets, the impact of the bullishness on the gold market has been minimal. Technically as well, this is more a rebound of the gold prices from the strong support.

Gold Bullish But Likely to be Shortlived

Though the gold prices have fallen, some strong support is found in the 1240 region which has helped the gold prices to basically reverse its fall but this has to be looked at with a pinch of salt. The reason is that the downtrend still continues to exist and the dollar strength is unlikely to give way anytime soon. With 2 more rate hikes scheduled for the rest of the year from the Fed, the gold bulls are unlike to get too much of a respite with the selling region around 1280 looming just ahead. Today is a holiday in the US markets and hence expect the volatility and the liquidity to be affected.

Gold Hourly
Gold Hourly

Crude oil prices continue to stay steady and trade in a strong manner over the last 24 hours. The prices are comfortably above the $70 region and it is expected that the bullish trend would continue in the short term. The next target for the bulls should be around the $75 region.

Silver prices continue to hog on to the $16 region and the prices have done pretty well considering the fact that the gold prices have fallen so much over the last few weeks. But the volatility continues to remain low in this market and that is probably one of the reasons why it is out of favor with the majority of the traders.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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