Gold prices are currently slightly lower. Last week, gold prices were fairly volatile, but ended the week higher. The precious metal has been supported by falling nominal US bond yields (as gold trades inversely to real interest rates). In recent history, gold has benefited when the US dollar is subdued in the face of rising trade tensions. As gold is quoted in dollars, it tends to weaken when the currency strengthens.
Looking at gold today, the precious metal is selling off as trade tensions ease (we covered more details in our US dollar daily update). US Treasury yields are currently rising (10-year Treasuries now trading at 2.803%), while the US dollar is fairly stable. Our short-term outlook is neutral, while our medium-term outlook on gold is bullish.
After its most recent top around $1,353, gold is now above $1,331.