Yahoo Finance Gold Prices Rise As Risks Increase
Gold prices have shot up since Friday as the global risks and uncertainty continued to rock the markets. The prices are still finding it a bit difficult to break through the 1300 region and continue to trade near the highs of the range for now. We believe that with the uncertainty increasing as of today morning as well, we should see the gold prices continue to trade in a buoyant manner for the rest of the day and the region around 1300 should come under threat during the course of the day. The rise is risk today has been caused by the news from Germany that the coalition talks have failed and now Merkel is in an unenviable position of trying to save her government.
Gold Likely to Rise Again
This is likely to cause a lot of confusion as the Eurozone economy depends a lot on the German economy. Also with the Brexit talks progressing, we are seeing that the leaders in both the UK and Germany are having troubles of their own and this is likely to affect the entire process leading to delays as well. This kind of uncertainty is not liked by the markets and hence we could see the European stock markets, especially the DAX sell off during the course of the day which should help to drive the funds towards gold and silver.
After a period of consolidation lasting for a few days, we are seeing the prices of oil beginning to move up once again. This is what we had been mentioning during the correction and the consolidation period as well when we pointed out that the prices would correct back to the $55 region, hold there for a few days and then being their next bullish leg which is likely to carry the prices back to their range highs once again and probably towards the $60 region as well, over the coming days.
Silver prices have also received a boost due to the increase in global risks and now we find that the prices have moved towards the $17.4 region and have since corrected lower since the morning towards the $17.1 region as of this writing. Like gold, we believe that the silver prices would begin to move up during the course of the day as the market begins to digest the news from over the weekend, including the events in Germany.
This article was originally posted on FX Empire
