Gold prices remain at highs last seen in early September 2017. Gold is slightly lower today thanks to a rebound in the US dollar. Looking at US bond yields, 10-year government bond yields are falling today. Given gold's sensitivity to real interest rates, the precious metal typically rallies when real rates fall. Thus today's weakness is mostly a function of US dollar strength. As gold looks overbought on a daily chart, we have been warning that a short-term pull back is increasingly likely. In the longer-term, the trend remains bullish thanks to an ongoing US dollar bear market and weak inflation expectations. Our short-term and medium-term trending indicators suggest that gold remains in a bullish trend .
After its most recent bottom around $1,240, gold is now above $1,339.
As gold prices gain on US dollar weakness, we are upgrading gold to bullish in the short-term. Note that gold is now looking overbought. This is based on various technical indicators on the daily chart.
Following recent strength in gold and weakness in the dollar, we are upgrading the precious metal to bullish in the medium-term. The precious metal is trading within normal conditions. This is based on technical indicators on a weekly chart.