Gold ended the day flat yesterday and remains flat this morning. Whether or not the precious metal can hold the $1,290 range remains to be seen. In general, gold is benefiting from doubts regarding future inflation. FOMC minutes suggest that many Federal Reserve Board members are questioning inflation in 2018. Similarly, the ECB's minutes suggested that the bank was unable to define an end-date for quantitative easing given low inflation in the Eurozone. With the upcoming US Senate tax vote next week, our view is that gold should continue to appreciate. Our short-term outlook remains bullish.
After its most recent top above $1,300, gold is now above $1,290.