Since the last few weeks, the commodity markets have been locked in a range.
In slow and consolidative trading that we’ve been witnessing in the markets, the prices of gold have recovered slightly over the last 48 hours. The prices have been on a back burner during the course of last week as the dollar has managed to return to its strength as the threats for a trade war seems to have no follow through action by both the parties. It is speculated that the dollar would have been much stronger than what it is now if not Trump’s traffic plan. The plan is most probability will only benefit US in the short term, it may actually turn out to be harmful in the long term. It won’t only take the US economy down, but that of others too.
The current scenario has caused the gold prices to move to 1320 region during the course of last week, but it has also managed to recover and it’s somewhere in the range of 1330 as of this writing. At this point it shows no momentum, we can hope for it to pick up as the market is back in action after the long weekend. Hence it can be assumed that the consolidation would continue.
It’s been a long time since the oil prices have gone through a spectacular curve, as we’ve been saying repeatedly over the last few weeks, the bulk of the move and the instability of the oil market is done and dusted, which is why we can’t expect too much of a movement in the medium term As if to prove that right, the oil prices continue to be stagnant in the $65 region over the last few days.