The prices of gold have been fortifying and trading in a secure range over the last couple of days. Though there hasn’t been a significant raise in the prices; the fact that they have managed to hold their place and are well supported over the last 48 hours despite of the stock market is on a rise, is good news for the bulls. It is probable that the prices will continue to rise from her on chiefly due to the fact that the risks continue to lay low. The Syrian war is yet to conclude, the trade war is still on and the wait in is only temporary, which means the market may upturn for the worse any moment. The traders continue to keep the gold bid on the high in the short term as they anticipate that the rates of gold will hike up once the geo-political conditions worsen.
Gold in Tight Range
At the present, the geopolitical conditions are stable and the fundamentals are back in focus. But we are well aware that politics is a game which could upturn with moment’s notice for the good or the worse. It should also be noted that the dollar hasn’t being doing as well as expected. It hasn’t decreased in value, but hasn’t gained either despite of the Fed rate hikes in March and the incoming data being in its favour. It is possible that the market expects too much of the dollar and whatever data comes in from the United States is viewed as status quo, nothing surprising.
The oil prices on the other had are having a sunny date as they have managed to move up from the $65 region and it seems likely that it would meet the bull’s target of $70 region in the short term.
The silver prices have been following the route of the gold markets and continue to stay within a fixed range over the past couple of days as well.
Gold is facing heavy resistance
Looking at the chart, gold seems to have broken above previous consolidation level and is currently facing heavy resistance at around $1350, which immediately comes to mind when looking at sheer number of negative candles formed around this area. A sustained breakout above this level is likely to push the commodity all the way up to $1364, with $1400 level eyed as important psychological barrier. Regardless of the above mentioned, we remain bullish of gold and believe that investors and forex traders will remain focused on safe-havens amid surging geopolitical risks and China-US trade disputes.