Gold prices are flat today after ending the day lower yesterday. While gold was down at one point yesterday, falling US Treasury yields helped the precious metal pare back most of its losses. Today, the US dollar is down slightly while US Treasury yields are slightly higher. As a result, gold prices are flat. Despite recent weakness in the precious metal, we maintain a bullish outlook over the longer-term. For reasons we have explained in more detail, we expect the US dollar bear market to continue. Furthermore, US Treasury yields are unlikely to keep rising as the pace of inflation is more likely to weaken in the coming months. All in all, weakness in the US dollar and falling yields should help the precious metal keep strengthening. Our short-term outlook remains neutral, while our medium-term outlook is bullish.
After its most recent bottom around $1,240, gold is now above $1,319.