Gold ended the day flat yesterday, and is rising this morning thanks to weakness in the US dollar. The precious metal has been range bound for a few weeks now. Our medium-term outlook on gold has been neutral since November 7. Since that time, gold has mostly traded sideways. Given the current environment of accelerating growth and inflation occurring in tandem, gold remains fairly unattractive as an investment. If inflation continues to accelerate from current levels, we expect gold to resume weakness. 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 $1,281.
As gold prices rebound thanks to concerns regarding 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.