The gold prices have been trading and consolidating within a tight range over the past couple of days. There has not been any momentum so far but the fact that the prices have been buoyant and well supported over the last 2 days despite the fact that the stock markets have been rising is a good indicator for the bulls. It is likely that the prices would go higher from here mainly due to the fact that the risks continue to lie underneath. The war in Syria is by no means over and the trade war is also going on and the wait in that is only temporary and things may turn to the worse at any point of time. If and when it happens, it is likely that the gold prices would shoot up and it is probably in anticipation of that, that the investors and the traders continue to keep the gold well bid in the short term.
Gold In Tight Range
For now, the focus is back on the fundamentals and there have not been much changes in the geopolitics. But we all know that politics is a game which could turn for the good or the worse at any point of time. It should also be said that the dollar has not been doing as good as many would have expected it to. Though the dollar has not weakened, it has not been able to make much progress as well even though the incoming data has been pretty good and even though the Fed has hiked rates in March. It is also possible that the market is expecting too much from the dollar and the Fed and that is why whatever happens to the data from the US, it only manages to meet the expectations and hence the market and the traders do not view it with surprise anymore.
The oil prices have also been enjoying their time in the sun as the break through the range below the $65 region has been going good so far for the traders and it is likely that the bulls would be able to achieve their target in the $70 region in the short term.
The silver prices have also been following the gold markets closely and they continue to trade within the tight range over the last couple of days as well.