The gold prices bounced off the 1325 support region and moved higher during the course of the last 24 hours. We had mentioned in our forecast yesterday that as the prices were moving lower, the region between 1320 and 1325 is likely to act as support for the short term and once that there was a likelihood of the prices bouncing from there and moving higher, which is what we have seen. The prices now trade above the 1330 region as of this writing and is likely to move towards the highs of the range in due course of time. There is a distinct lack of any fundamental drivers at this point of time and this has led to some choppiness in the prices.
Gold Bounces Off Support
In fact, the dollar has been quite steady during this period but with the shutdown in the US looming ahead, the market does not want to take any chances by buying the dollar just yet. This has given an opportunity for the bulls to push the prices higher and this shows that the trend is still alive and kicking as yet. The prices are likely to bounce and recover and consolidate between the 1325 and 1345 regions for the short term. We are in the second half of the month when there is not much news around and so we can expect a lot of ranging and consolidation during this period.
The oil prices fell over the last 24 hours and briefly traded below the $63 region. There does not seem to be any major fundamental reason for this as the oil inventory data from the US yesterday showed a greater draw in the inventory than what was expected. This should have led the prices higher but we have had a correction. There are no signs of a reversal as yet and so the bulls should continue to push the prices higher.
Silver prices also recovered slightly over the last 24 hours and they trade above the $17 region as of this writing. The prices are expected to hold steady during the short term.
This article was originally posted on FX Empire
More From FXEMPIRE:
- ETH/USD Price Forecast January 19, 2018, Technical Analysis
- Crypto Recovery or the Beginning of the End
- Bitcoin Cash, Litecoin and Ripple Daily Analysis – 19/01/18
- Commodities Daily Forecast – January 19, 2018
- Price of Gold Fundamental Daily Forecast – Gold Still Moving Lock-step with U.S. Dollar
- Forex Trading Signals – January 19, 2018