Gold Daily Updates

06 February 2018

Gold prices strengthened yesterday and continue to climb this morning. Despite last night's stock market sell-off and corresponding strength in the US dollar, gold benefited from falling real interest rates. Looking at 10-year US Treasury yields, yields fell from 2.85% down to around 2.73% today. Gold is currently strengthening despite the fact that both the US dollar and US Treasury yields are flat. Until the current stock market rout ends, the short-term direction for gold remains unclear. Over the longer-term, we expect the dollar bear market to continue and gold to benefit as a result. 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 $1,342.

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