Gold Prices Trying to Form a Base

Gold prices have been consolidating and ranging over the past couple of days in an effort to find some support from somewhere. The gold market has been having a tough time of late with the funds being drawn out of the gold market and being pushed into the stock markets as the stock markets around the world have been given a boost with the dollar being steady, with rates being hiked and with the ECB also making it clear that the QE would continue much longer than what was expected by the markets. A combination of such events has ensured that the gold prices have been under pressure and with the tension in the Korean region also subsiding with no more threats from North Korea or the US, the risk has also settled down.

Gold Prices Continue to Look Weak

We have been mentioning about this large cycle of weakness in the gold prices over the last couple of weeks or so and this is likely to keep the gold prices at the lows of the range. What this also means is that any bounce in the prices of gold are likely to be met with a lot of selling in the short and medium term and traders should also ensure that they follow this pattern. They must also be careful in ensuring that they have tight stops when they trade as any rise in risk from any part of the world could lead to a large bounce in the gold prices.

Oil prices finally shot higher and all the consolidation and ranging that we saw in the prices over the last few weeks have finally led to this bullish run. We have been talking about the target of $55 for quite sometime now and this target is now close at hand as the prices trade just below that region as of this writing. It is only a matter of time before the oil prices do cross through that region and when that happens, we should see some profit taking and hence a correction before the next bullish leg with the target as $60 in the medium and long term.

Silver prices have also been consolidating since Friday as the market tries to find a base. They have also been hit hard by the strength of the dollar and the pick up of risk around the world which has helped the stock markets to rocket higher over the last couple of weeks.