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 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.