This is an older news update for Gold. Click here to view the latest daily update.

Gold daily update for 4th January 2018

BY DEB SHAW | 

Despite weakness in the US dollar this morning, gold is currently selling off. Looking at US government bonds, rising yields are driving higher real rates, which is negative for the precious metal. As we have written before, gold trades inversely to real interest rates. After peaking below $1,320, gold is no longer looking overbought on a daily chart. Given the pace of strengthening since mid-December, the precious metal was due for a short-term pullback. Now that gold prices have corrected, we expect a longer-term bull market to ensue. Thanks to weak US inflation and strong global GDP growth, the US dollar is likely to remain weak helping gold prices shine. Our short-term outlook on gold remains bullish. 

After its most recent bottom around $1,240, gold is now above $1,309.   

Updated