After a modest rebound yesterday, gold is back to selling off this morning. Upcoming CPI figures and the Fed meeting remains a significant threat to precious metal prices. Yesterday's PPI numbers helped catalyze strength in the US dollar. Given strong crude oil prices in recent history, there is a good chance that CPI figures are also strong. As rising inflation is bad news for gold in today's economic environment (as this sparks rate hike fears), bulls have been reluctant to buy gold ahead of today's events. Today's Federal Reserve meeting may include a particularly hawkish statement from Janet Yellen. This is because today is Yellen's last meeting in her role as Fed Chair. Our short-term outlook on gold remains bearish. We also downgraded our medium-term outlook on gold to bearish yesterday.
After its most recent top around $1,299, gold is now below $1,242.