Gold Prices Stabilise At Last

The gold prices at last managed to find some support during the course of trading yesterday and it was able to halt its downward momentum. The prices had been slipping lower for the past couple of weeks and it looked as though the gold market would be in for more pain for the gold bulls as the early part of the day was spent in moving down even further. But support came in a bit later in the day as the dollar weakened all across the board and this helped the prices to recover to some extent and its trades in the 1275 region as of this writing. There is no specific reason for the dollar to fall but it could be due to the fact that traders are taking profits on their dollar longs ahead of the important news scheduled to be released today and later on in the week as well.

Gold Prices Await US Data

It could also be due to the fact that the traders want to see how the news pans out before they commit themselves in either direction as yet and that is why we are seeing a bit of  a rebound in the gold prices. It remains to be seen how long this is likely to last as we have a range of news from the US today that includes the ADP employment report and the non-manufacturing PMI data as well. We also have the NFP employment report later on in the week and the market will be seeing if the strength in the US data continues and if it does, we could see the dollar gaining strength once again and the gold prices falling.

Oil prices continue to trade just above the $50 region as of this writing but now the support is under threat and it remains to be seen whether the region around $50 would be able to hold the prices for now. Even if it does not, we continue to believe in the uptrend as far as the oil market is concerned and traders can continue to use any correction in the prices as an opportunity to go long on the oil contracts. We believe that the prices will carry on towards $55 in the medium term and thats where the traders should be aiming for.

Silver prices also stabilised during the course of trading yesterday but it is likely to be short lived as we expect a lot of volatility in the markets starting today till the end of the week as a large amount of important data would be released from the US. The silver prices continue to be in a downtrend in the long term.