Gold is currently slightly lower as the US dollar rebounds. Yesterday, the precious metal began the day selling off but ended the day higher. Gold made gains as the US dollar sold off during European hours. As we wrote in our US dollar daily update earlier today, the rebounding fortunes of the euro and the British pound pushed the US dollar lower in relative terms. Looking at US bond yields, 2-year and 10-year Treasury yields are slightly higher. As gold is negatively correlated with real interest rates, the precious metal tends to weaken when interest rates rise. Our short-term outlook on gold is neutral, while our medium-term outlook remains bullish.
After its most recent top around $1,334, gold is now above $1,313.