Gold is currently enjoying a rebound as the US dollar gives up some of its recent gains. On Wednesday, Trump's new Director of the National Economic Council Larry Kudlow recommended selling gold and buying "king dollar". While initial market reactions were limited, gold sold off sharply yesterday as the dollar rose. While it is tempting to suggest the recent moves came about due to Kudlow's comments, the dollar probably enjoyed a relief rally after weakness at the outset of the week. As gold is priced in dollars, the precious metal sold off as a result. Today, gold is higher as US bond yields fall and the dollar weakens. Our short-term outlook on gold is neutral, while our medium-term outlook remains bullish.
After its most recent top around $1,340, gold is now above $1,317.