Gold Prices Try to Break Through $1300

Gold prices tried to break through the 1300 in bid to move out of the long held range but it was met by a lot of selling in that region and it has since fallen back towards the 1290 region as of this writing. We have been saying that the dollar was expected to gain some traction yesterday as the US traders returned back from their long holiday. The dollar had been on the backfoot towards the end of last week and one of the reasons for that was the fact that the liquidity was less due to the holidays in the US. So, it was generally expected that the dollar would gain yesterday during the US session but the gold bulls wanted to make use of the available opportunity to push the prices higher.

Gold Attempts Breakout But Fails

This is why we saw the prices being moved towards the 1300 region in a bid to breakout during the London session but the sellers were wise to that and promptly beat back that move. This accelerated the selling in the US session and the gold prices have since fallen to the 1290 region. Credit has to be given to the bulls for managing to keep the gold prices near the highs of its range over the past week or so and this should keep the bulls interested in the short term. Any sign of weakness in the dollar is likely to be capitalised upon by the gold bulls to push the prices through the 1300 region.

Oil prices corrected lower yesterday as there were rumors that the OPEC members may not announce the continuation of the production cut in their next meeting. There were also reports that said that there may not be any explicit production cut for the whole of 2018 as well. This may be logical in one sense as the OPEC producers have managed to achieve their target for the oil prices and they might start feeling comfortable with where the oil prices are, right now. But this is all speculation at this point of time but this was enough to drive the prices lower back through the $58 region.

Not much is happening in the silver market over the last week or so as the moves in this market are becoming lesser and lesser by the day. The prices are very choppy on either side of the $17 region and this is expected to continue in the short term.