Despite a solid upswing in gold prices yesterday, the precious metal is back to selling off this morning. Gold has been stuck in a range between $1,270 and $1,280 for the last 10 trading sessions and continues to trade sideways. The dollar continues to strengthen, despite looking overbought in the short-term, thanks to the improving outlook for GDP growth and accelerating inflation. Looking at technicals on a daily chart, gold is neither oversold nor overbought and continues to trade within a normal range. Later today, we will upgrade our medium-term outlook on gold from bearish to neutral as the precious metal trades sideways.
After its most recent top above $1,300, gold is now below $1,276.
As gold remains stuck in a narrow range, we are upgrading gold to neutral in the short-term. Gold is neither overbought nor oversold today and continues to trade within normal conditions. This is based on various technical indicators on the daily chart.
As gold continues to trade sideways, we are upgrading the precious metal to neutral in the medium-term. 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.