Gold is moving down today. Yesterday, the precious metal managed to end the day higher, but trading volumes fell after rising four days in a row consecutively. Looking at the dollar, the US dollar index moved slightly higher to 94.83 from 94.72 previously. Likewise, US 10-year Treasury yields moved slightly higher ending the day around 2.87%. The combination of strength in the US dollar and rising Treasury bond yields sent gold prices lower. Today’s gold trading range is $1,238 - $1,261.
Looking at gold today, the precious metal is moving down following the release of accelerating consumer price index figures. The US consumer price index increased to 2.9% in June, accelerating from the previous monthly figures. With wages and inflation moving up, the Federal Reserve is more likely to tighten monetary policy. Gold, being negatively correlated with the US dollar, is likely to keep selling off as US growth and inflation continue to accelerate. Our outlook on gold remains bearish.
After its recent top at $1,284, gold is now trading just above $1,245.