Gold Prices Steady and Strong

Gold prices continued to consolidate near the highs of its range and are looking to push through the highs and move into some serious space. So far, the selling in that region has held back the price moves but it remains to be seen how long the selling is going to happen. This region is likely to be very critical which would determine the short term direction for this instrument and that is the reason why we are seeing a big battle going on over here. Yesterday, the dollar weakened further and the euro continued to strengthen as it becomes more and more clear that tapering could be around the corner.

Gold Expected to Stay Strong

This did not impact the gold prices too much and it continues to trade in a tight consolidation range. The effect of the weak dollar and the strong euro seems to have cancelled out the effects of each other and that is the reason for the stalemate in the prices so far. It is the last day of the week and with not much news around as far as the Eurozone and the US are concerned and so we are likely to see some more consolidation with a strong bullish bias. We might also be exposed to some profit taking towards the end of the day as the traders begin to book profits for the weekend and do not want to take chances over the weekend as well.

As we had mentioned yesterday, the oil prices have corrected lower over the last 24 hours though the correction has been quite small so far. The oil prices had reached near their highs of the month and it was natural for the traders to take some profits in that region and that is partly the reason for the fall in the oil prices so far. The oil prices are expected to meander around for the rest of the day with the lack of fundamental drivers in the market for the rest of the day. This consolidation is likely to last for the next few days as well as the investors search for direction.

Like gold, silver prices also continued their recovery and trade near the highs of the range and as is usual for silver, it is likely to continue to trade closely to the gold prices and expected to follow the movements in gold.