Yahoo Finance Gold Prices Looking for a Breakout
The gold prices have continued to move higher but as we indicated yesterday, they are now in a region of selling and resistance and pushing through this region would not be as easy as before. This is the high of the range that we have seen since the beginning of the year and it is likely to take some extra effort from the bulls to push through this region so that they can take the prices higher. And they will have to do it alone over here as the investors and the traders who have helped to push the prices along so far would now be reluctant to push it any further in the absence of any major fundamentals or economic drivers.
Gold Testing Range Highs
To be fair to the dollar, there has not been any major flaw on a fundamental basis with the US economy. The incoming data from the US has been fairly good and there does not seem to be any danger to the expectation of the market for a rate hike in March and 3 rate hikes during the course of the year. But, the dollar bears have used this uncertainty to their advantage and pushed the gold prices higher and it remains to be seen how far high they would be able to take this as a breakout through the highs of the range would be targeting $1400 and higher.
The oil prices have also been trading in a steady manner over the last couple of days and they have been able to make use of the weakness in the dollar to push through the $60 region once again. They are likely to slow down in this region in due course of time and we believe that we wont be seeing too much action in the oil markets over the short and the medium term as the market comes to terms with the new price range.
The silver prices continue to trade in a steady manner but they dont seem to be in any hurry to push through higher for now atleast. They are following the direction of the gold markets but not the speed.
This article was originally posted on FX Empire
