Gold prices are currently slightly higher. Yesterday, the precious metal ended flat after strengthening at the outset of the day. While both the dollar weakened and US Treasury yields moved lower during US trading hours, gold prices failed to move higher. As fears of a military conflict in Syria fall, gold has lost its safe haven bid.
Looking at gold trading today, the precious metal continues to trade in a tight channel between $1,310 and $1,358 (it's previous high from last January). While the ongoing deceleration in global growth and falling US Treasury yields are positive for gold, the potential rebound of the US dollar remains a significant threat. Yesterday, we published a longer commentary on the dollar, arguing that conditions were ripe for a rebound. If the dollar enters a bullish trend (our medium-term outlook is currently bearish), expect gold prices to suffer accordingly. Our short-term and medium-term outlook on gold remains bullish.
After its most recent top around $1,353, gold is now above $1,348.