Gold Daily Updates

01 February 2018

Gold is currently selling off thanks to strength in the US dollar. As we wrote in our US dollar daily update earlier today, the Federal Reserve signaled comfort with its outlook for growth and inflation this year. As such, monetary policy is set to become tighter as the Fed is more likely to keep raising rates. As gold trades inversely to real rates in the long term, higher interest rates are typically bad for the precious metal. Following the last rate hike in December, gold prices soared as the dollar weakened on strong global growth. With March rate hike odds rising to 83%+ following the statement, gold is more likely to take a breather until the next Fed meeting on March 21, 2018. Looking at technical conditions, gold is currently trading within a normal range on both the daily and the weekly chart. 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.

Updated 
Short term outlook
Bullish

As gold prices gain, 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. 

Medium term outlook
Bullish

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. 

Updated