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Gold daily update for 29th January 2018

BY DEB SHAW | 

Gold prices are slightly weaker this morning thanks to a rebound in the US dollar. Rising nominal bond yields are an additional driver of gold weakness today. Over the long-term, gold trades inversely to real interest rates (thus rising bond yields are generally negative for the precious metal). Last week, we warned that gold was looking overbought while the US dollar was looking oversold. As such, the latest correction in gold is not entirely surprising. Gold is now trading within a normal range, looking at technical indicators on a daily chart. As the US dollar remains in a longer-term bearish trend, we expect gold prices to keep strengthening following the ongoing pullback. Our short-term and medium-term trending indicators suggest that gold remains in a bullish trend.   

After its most recent bottom around $1,240, gold is now above $1,345.

Updated 
Outlook
Bearish

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