Gold prices are slightly lower today. Last week, the precious metal strengthened thanks to fears of US military action in Syria. Over the weekend, Trump tweeted "Mission Accomplished!" following the recent strikes. As a further escalation in the Syrian conflict seems unlikely, gold is losing its safe haven bid.
In recent history, gold has surged alongside rising geopolitical fears. The precious metal made its most recent highs thanks to fears of a US-China trade war, and a military conflict involving the United States and Russia in Syria. Unfortunately, the precious metal has been unable to hold on to its gains. Looking at a chart of gold, the precious metal has made four lower-highs since its first high in late January. While decelerating global growth and geopolitical risks are helpful for gold, fears of US dollar strength are impeding the rally. This is particularly the case as the US Federal Reserve is likely to keep raising rates this year. Our short-term and medium-term outlook on gold remains bullish.
After its most recent top around $1,353, gold is now above $1,343.