Gold Prices Shoot Higher on Increased Risks

Gold prices shot higher yesterday as the risks and the threats in the Korean region continued to dominate the markets once again yesterday. This has become a periodic occurence over the last month or so with the US and North Korea trading threats. Yesterday, the foreign minister of North Korea said that the speech from Trump over the weekend was a declaration of war as far as the country was concerned and hence, it reserved the right to shoot down the US warplanes even if it was not in the Korean airspace. Though such speeches have become pretty common for North Korea, the market is yet to come to terms with such war of words and thats why we saw the stock markets crash and gold prices shoot up once this news came in.

Gold Prices Push Through 1310

This made the gold prices to push through the 1300 region and the prices now trade above the 1310 region as of this writing though it remains to be seen how long it can manage to hold on to the highs. It is to be noted that the gold prices have been guided by the global risks over the last few weeks and whenever we have seen the risks subside, we have also seen the prices move down. The dollar has begun to become steady over the last couple of weeks and this is bound to weigh on the gold prices sooner or later and it is for this reason, that we believe that the gold prices would be under pressure in the short and medium term. But news like those from North Korea is likely to keep the bulls interested and in business.

Oil prices shot higher on the back of increased global risks as the prices broke through the $52 region and trade comfortably above that region as of this writing. We have been talking about the underlying bullish trend in the oil prices for quite some time now and have also been mentioning $55 as one of the targets on the medium term and this push higher has helped the prices go a long way in achieving this target. The prices are likely to face quite a bit of resistance in the $53 region and once that is done and dusted, they should be well on its way towards $55.

Silver prices also shot higher and pushed through the $17 region as the increased risks in the Korean region weighed on the stock markets forcing funds to look towards safe havens like gold and silver. The prices are expected to be choppy in the short term as the market comes to terms with the risks and the increased strength of the dollar.