Gold Prices Stay in Range

Gold prices have been continuing to consolidate and range over the last 24 hours which is something that we have come to expect from the gold market in recent times. But this time, the ranging and consolidation has been happening near the highs of its range which should give some hope for the gold bulls that the prices would break through sooner than later. It was a holiday in the US yesterday on account of Thanksgiving and the long weekend has ensured that the liquidity and the volatility have been lesser than the usual. This could work both ways for the market as the low liquidity could either mean some dull trading or traders could use this opportunity to push the market in a specific direction with little resistance.

Gold Prices Range Near Highs

That is why the market never has a dull moment and with the gold prices trading near the highs of the range, the breakout through the highs continue to remain a real possibility despite the lack of liquidity. Also, the traders need to be careful at this stage and ensure that the breakout, if and when it happens, is confirmed before they jump in on their trades. Many times, breakouts happen on low liquidity only to get fully reversed when the market returns to normal again and this is something that the traders have to protect themselves against.

Oil prices seem to be in a separate world of their own as none of the happenings in the rest of the commodity or the currency market seem to be having any kind of an effect on the prices. The oil prices continue to move higher through the $58 region and as we have been saying all along, they seem well set to enter into the $60 region pretty soon. Credit has to be given to the oil producers for sticking together for the long run and ensuring that their production cut plan to hike prices worked in the medium and long term.

Silver prices continued to trade in a tight range and they do not seem to be showing as much enthusiasm about the weakness in the dollar, as much as that seen in the gold market. The movements in the silver market have been very slow and low and this consolidation is set to continue for today as well, on account of the light economic calendar.