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

Gold selling off as both interest rates and the dollar rise

Gold daily update

BY DEB SHAW | 

Gold daily update

Gold prices are currently lower thanks to both strength in the US dollar and rising US Treasury yields. As we wrote in our US dollar daily update earlier today, the dollar is currently rebounding despite fears of increasing government deficits and accelerating inflation. As the buck remains in a longer-term bear market, we expect the current upturn to be fairly short-lived. Looking at US Treasuries, yields are higher today and are currently trading at levels last seen in 2011. Thanks to falling commodity prices since January and base effects (at this time last year, inflation was fairly high), we expect a more moderate outlook for inflation going forward. While gold is falling today, the longer-term bull market is intact. 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 $1,337.

Updated 
Outlook
Bearish

Subscribe to the MarketsNow Gold daily update