Gold prices are currently flat. Yesterday, the precious metal ended the day flat after moving higher at the outset of the day. Following significant trading activity last Friday, trading volumes in gold futures were fairly light yesterday. More specifically, volumes fell below both 30-day averages and compared to the previous session. Today's gold trading range is $1,184 - $1,209.
The pattern of weakness in the US dollar and rising US Treasury bond yields continues today. 10-year US Treasuries are currently (3.113%) just below highs last seen in May (3.115%). As yields on US dollar-based investments increase, gold is weakening as a result. While the negative correlation between gold and the US dollar is one of the strongest across all asset classes, rising yields is capping any gains in the precious metal. Our outlook on gold remains bearish.
After its recent top at $1,213, gold is now trading above $1,200.