Gold Outlook for 31 October 2017

Bearish

After weakening in the latter half of October, we are downgrading gold to bearish in the medium-term. As Trump makes progress on the tax reform bill, expectations for future inflation and rate hikes are rising. Given gold's sensitivity to real interest rates, the precious metals is selling off as a result. While gold was looking overbought earlier in October, the precious metal is now trading within normal conditions. This is based on technical indicators on a weekly chart. 

Updated