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Gold trading flat as both interest rates and the dollar strengthen

Gold daily update


Gold daily update

Gold prices are currently flat, after falling last Friday. As we wrote in our US dollar daily update earlier today, the buck is rising from 3-year lows. While current economic conditions are supportive for continued USD weakness, the dollar is currently taking a breather. Beyond the dollar, nominal interest rates are slightly higher today. Looking at 10-year US Treasury bonds, yields are currently strengthening. The precious metal tends to weaken when the dollar is strong and real interest rates rise. Over the longer term, we believe that interest rates are more likely to fall while the US dollar should stay weak. While gold is flat today, the precious metal should keep strengthening in the future. Our short-term outlook and our medium-term outlook on gold remains bullish.  

After its most recent bottom around $1,315, gold is now above $1,347.


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