Gold Rises Higher on Dollar Weakness

Gold prices have been rising steadily higher as the precious commodity seems to have found some favor with the bulls over the last few days. The weakness in the dollar has also been helping the prices to move higher and this is expected to continue in the short term. The dollar strength which came about due to the passage of the tax reform bills seems to be wearing off slowly and steadily and this has given an opportunity for the gold bulls to make a sort of a comeback over the last couple of days and this has been able to push the prices through the 1280 region as of this writing. This weakness in the dollar is seen across the board and is likely to last for sometime as doubts are now being raised about the implementation of the tax reforms.

Gold Prices Likely to be Buoyed

There are some reports that say that the reforms would be implemented only next year and if that happens, it would be viewed as a setback for Trump and his team. The tensions in the Korean region continue to simmer as Trump continues with his Asian trip and it is likely that it may spill over anytime and this possibility is also helping the gold prices to keep moving higher. But towards the end of the month, the noise over the likely rate hike from the Fed in December is likely to rise again and this should put the gold prices under pressure and this is why we believe that any bounce, like the one we are seeing now, is likely to last only for the short term.

The oil prices continue to trade in a buoyant manner as the crisis in Saudi Arabia begins to abate. The prices trade above the $57 region and may correct towards the $55 region and consolidate as it awaits the next push from somewhere. The next target of the oil bulls is likely to be the $60 region as the uptrend in the oil prices do not show any signs of abating. Traders would do well to wait for a correction in the prices before loading on to their buys and looking for a move higher.

Silver prices have also been trading in a steady manner above the $17 region over the last 24 hours as the safe havens have found favor again with the dollar weakening slightly all across the board.