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Gold trading flat following Friday's sell-off

Gold daily update

BY DEB SHAW | 

Gold prices strengthened yesterday and continue to climb this morning. Despite last night's stock market sell-off and corresponding strength in the US dollar, gold benefited from falling real interest rates. Looking at 10-year US Treasury yields, yields fell from 2.85% down to around 2.73% today. Gold is currently strengthening despite the fact that both the US dollar and US Treasury yields are flat. Until the current stock market rout ends, the short-term direction for gold remains unclear. Over the longer-term, we expect the dollar bear market to continue and gold to benefit as a result. 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 $1,342.

Updated 
Outlook
Neutral

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