Gold Daily Updates

08 February 2018

Gold prices are lower today, after falling yesterday. While the US dollar rebound has paused today, US Treasury yields continue to strengthen. Looking at 10-year US Treasuries, yields are approaching highs last achieved a few days ago, and are trading around 2.84%. As gold trades inversely to real interest rates, rising nominal rates are typically bad for the precious metal. Recent gold weakness is largely the result of a strengthening dollar and rising interest rates. As gold has run out of momentum in the short-term, we have downgraded our short-term outlook to neutral. In the longer-term, bullish momentum remains intact and gold prices can keep strengthening. As we wrote in a recent commentary, the longer-term outlook for gold remains positive. 

After its most recent bottom around $1,240, gold is now above $1,313.


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.