Gold is once again the beneficiary of US dollar weakness today. After the precious metal ended the day flat yesterday, gold prices are currently rising. Looking at US bond yields, 10-year yields are slightly higher today, but that isn't putting a dampener on gold. Earlier in the week, we wrote that gold was looking overbought according to technical indicators on a daily chart. This is no longer the case this morning, suggesting that gold has room to keep strengthening. In general, the US dollar bear market coupled with weak inflation should keep the precious metal on a strengthening path. 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 $1,332.
As gold prices gain on US dollar weakness, we are upgrading gold to bullish in the short-term. Note that gold is now trading within a normal range. 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.