Gold Daily Updates

08 March 2018

Gold prices are higher today as both the US dollar and bond yields edge lower. The US dollar index is slightly lower today, while 10-year US Treasury bonds are currently yielding 2.87%. As an alternative to fiat currency, gold prices tend to rise when real interest rates fall. When real rates are high, investors choose bonds instead precious metals (unlike gold, bonds pay a coupon). When real rates fall, gold becomes relatively more attractive to bonds and appreciates as a result. Given our outlook for moderating inflation (which should result in lower nominal rates), gold prices should remain in a bullish trend. The main risk for gold is a rally in the US dollar - for now, the dollar remains in a bearish trend. Our short-term outlook on gold is neutral, while our medium-term outlook remains bullish. 

After its most recent top around $1,353, gold is now above $1,328.

Updated 
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