Gold prices are flat today, after ending the day flat yesterday. Looking at the US dollar, the buck is currently flat as global risk sentiment improves. Bond yields, such as 10-year US Treasury yields, are flat today. Given that gold trades inversely to real interest rates, the precious metal tends to strengthen when nominal yields (all else held equal) weaken. As gold is primarily traded against US dollar, the precious metal also trades inversely to the currency. Looking at technicals, the longer-term trend for gold remains bullish. While gold has been trading sideways since February, we remain bullish on the precious metal's prospects. Our short-term outlook on gold is neutral, while our medium-term outlook remains bullish.
After its most recent top around $1,353, gold is now above $1,321.