Gold has enjoyed three sessions of rising prices and is currently trading above $1,280. The latest catalyst for gold includes rising concerns regarding US tax reforms. Yesterday, House Ways and Means Committee Chairman Brady criticized the Senate plan for eliminating the state and local tax deduction. As differences between the House and Senate plans are proving difficult to reconcile, the US dollar is weakening and gold prices are benefiting as a result. Despite gold's recent strength, the precious metal is underperforming relative to the euro. We upgraded our short-term outlook on gold this morning to neutral. Looking at technical indicators, gold is trading within normal conditions and is neither overbought nor oversold.
After its most recent top above $1,300, gold is now above $1,282.
As gold prices rebound thanks to concerning tax reforms, 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.