Gold Prices Stall in Dull Trading

Gold prices, like the rest of the market yesterday, did not move much and we only could see a lot of ranging and consolidation in the prices over the last 24 hours. The market overall was dull yesterday despite the release of data from the US in the form of an expected ADP data and a better than expected non-manufacturing PMI data. None of these news events and data could move the market in any direction and what we got was dull and consolidative trading. The gold prices did try to move up towards the 1280 region during the course of the first half of the day but it was met with a lot of selling in that region which forced it back to the 1275 region and it continues there as of this writing.

Gold in Consolidation

We believe that the gold prices are in a bear trend in the long term as the various central banks look towards hiking rates making them better choices for investments than safe havens like gold and silver. The stock markets are also likely to go into a long term bull run and a combination of these factors is expected to push out funds from the gold market and into the bond markets and the stock markets as well. So, any advance in the gold prices should be viewed as an opportunity to sell.

The oil prices tried to move higher during the course of the day yesterday but again, they were met with selling and it continues to trade just above the $50 region as of this writing and this consolidation is expected to continue in the oil prices. With the prices seemingly immune to the way the dollar moves, the oil markets need to get a fundamental push from OPEC or from somewhere else which will give it the momentum to push through the high resistance region between $53 and $55. We believe that this will eventually happen as this would be the likely first target for the investors.

The silver market was also engaged in some dull trading, like the rest of the market, as it awaits further direction in the short term.