Gold is up slightly this morning after falling sharply on Monday. As gold prices once again approach $1,280, there is a risk that sellers emerge. In the past two weeks, gold sellers have emerged during US trading hours above current levels. We have downgraded our short-term and medium-term outlook on gold to neutral. Despite volatile price action, our view remains that doubts regarding the US Senate tax bill will ultimately lead to some support for gold in the short term.
After its most recent top above $1,300, gold is now above $1,279.
Following a recent selloff in gold above $1,280, we are downgrading 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.