After rising sharply on Friday, gold was again slammed down below $1,280 yesterday. In the past two weeks, gold sellers have emerged during US trading hours at prices above $1,280. Following volatile price action, we will downgrade our outlook on gold to neutral in both the short-term and medium-term later today. As growth and inflation are both accelerating today, the economic backdrop weighs against gold. That being said, doubts regarding the upcoming Senate tax vote should lend some support to the precious metal. In a broader commentary published last night, we argued that the Senate's odds of passing tax reforms remains far from certain.
After its most recent top above $1,300, gold is now just above $1,280.