As both the US dollar and interest rates fall, gold is marching higher today. After ending the day below $1,340 yesterday, the precious metal found support and is currently trading above $1,343. While the US dollar was supported by rising rates earlier in the week, this pattern ended today. 10-year US Treasury yields are currently trading just above 2.7% (below a recent high of 2.72%), while the US dollar index (a measure of the US dollar against six major currencies) is falling. Looking at technical conditions, gold is currently trading within a normal range and should be able to push higher over the coming days. Thanks to the ongoing US dollar bear market, gold is likely to resume strengthening. 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 $1,343.
Following recent strength in gold, 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.