Gold Prices Slow and Subdued

The dollar has been doing very well for itself and that has been showing in the way that the gold prices have been under pressure over the last week or so. The NFP data came in weaker than expected but the data from the previous month was revised higher which meant that the end result for the dollar was a mixed impact with neither the bulls nor the bears gaining the upper hand. This is the reason for the consolidation as the market awaits further data later in the week.

Gold Likely to Continue to Range

That data is in the form of PPI and CPI data later in the week with the inflation data being watched in a very close manner. This is the next most important piece of data from the US and with the incoming data being choppy over the last few weeks, the traders would want to see some justification for their bullishness or else the move from the dollar higher would look too stretched at this point of time and we could see a correction. If that happens, we could see the gold prices fall back into the range as it moves back towards the $1350 region in due course of time.

Oil prices also continued to consolidate and range in line with the trend in the commodities market and as we have been saying all along, this is expected to continue in the short term as well. The bulls would be looking for $70 and beyond with no signs of any kind of reversal as yet.

The silver prices also continue to trade in a range and consolidate with not much happening in the markets.