While gold was quite strong at the start of the day yesterday, the precious metal has since fallen back down to around $1,275. Following strong US PMI data yesterday, interest rate hike expectations are rising. As gold is highly sensitive to real interest rates, the precious metal failed to stay above $1,280. Our short-term outlook on gold remains neutral. Despite Trump's Twitter comments this weekend suggesting that diplomatic talks with North Korea would be of limited use, gold has not strengthened as political tensions rise.
After its most recent peak close to $1,350, gold is now well under $1,300. The precious metal is currently trading around $1,275.