Gold prices continued to be buoyant as they continued their rebound and recovery from the range lows for another day on Friday and today as well. The prices had dropped to their range lows in the 1300 region over the course of last week on the back of dollar strength and it looked for a brief while that we will finally have the breakout that the traders have been looking for. The prices had been locked in the range between the 1300 and 1360 region for quite sometime now and though there have been attempts to break out on either side of this region, the momentum has been lacking. The same was lacking once again as the bears failed to break through the 1300 region as the reports of important tariff from the US just about saved the gold bulls in the nick of time.
Gold Prices Move Higher
The US administration has imposed the import tariffs on steel and aluminium and this led to fears that the issue would escalate into a full scale global trade war among the major global economies which includes China and Germany as well. This fear led to the pulling out of funds from the stock markets and this pushed the major stock indices lower. On the other hand, we saw the funds being piled into the safe haven like gold and that is why we have been seeing the prices go up since that time as the prices now trade clearly above the 1320 region as of this writing.
The oil prices staged a recovery on Friday and this continues as of today as well. The recovery began from the low 60s region and it happened due to the weakness in the dollar that has set in all across the markets as the imposition of tariffs has brought in weakness in the dollar in anticipation of a weakness in the US economy as well. This choppy trading is set to continue in the short term.
Silver prices managed to move above the $16.5 region and they are likely to continue to trade in a buoyant manner in the short term, taking the lead from the gold prices.