Posted By Akash Gokhe Posted On

Gold stocks higher in midday for the but backed down from the overnight high

The prices of Gold had been higher during the trading midday on Monday however they have been backed down from the seven-year high where it was overnight at $1,590.90 basis. The low-range close on Monday has hinted that the gold is going to be running out of gas in short term and then going to need to pause or rest.

The futures of silver had scored a high of over three months of $18.55 basis. The tensions in the geopolitical environment are likely to support the metals which are considered as the save-havens.

The stock indexes of the United States have been coming up well from the lows overnight and have also been encouraging a bit of profit taking when it comes to gold from the traders of short-term futures in response to the recent gains being good.

For the traders of very short term or the futures market of gold, there is a major development. The history has shown that a big rise in the prices in the wake of higher volatility usually produces near- term highs shortly post the initial spike. If this is to hold true, in the coming days the market of gold might be putting in a high in the near term which is looking like it will be lasting for a decent period of time.

The long-term investors of gold will be noting that the recent gains in price have been strong and an upside bullish of a breakout form the levels of recent trading suggest that there is a lot of more gains of price which can be projected to take place in the upcoming weeks or even longer.