Gold Prices Turn Choppy

Gold prices have been choppy over the last 24 hours as a mix of data and events from different parts of the globe have had a push and pull effect on the prices with the prices finally recovering and moving towards 1280 as of this writing. It is expected to face some selling in this region and with the dollar holding steady, we do not expect too much of an upmove at this point of time.

Gold Under Pressure

Yesterday, the first half of the day saw some selling in gold which pushed the prices towards the 1270 region and for a brief while, it looked as though it was all over for the bulls as the prices continued downward. But as the US session began, we saw some dollar selling despite some good incoming data from the US and this has been going on this morning as well which has helped the prices to move higher. With the focus on the euro for today, it can be safely expected that the gold prices are likely to continue to be choppy today as well. It would be difficult to convince anyone to buy gold at this point of time as we have repeatedly pointed out that the gold prices are in a larger cycle of weakening which is likely to lead the prices lower in the short and medium term as well.

Oil prices continued to trade in a steady manner as the release of the oil inventory data from the US seems to have had little impact on the market prices. This consolidation is set to continue in the short, for reasons that we have repeated over several of our forecasts.

Silver prices have also been choppy over the last 24 hours and though the overall direction is still pointing downwards, it can be safely said that we are likely to see some choppy and consolidative action in the prices for the short term.