Gold prices are currently flat after a big move down yesterday. The culprit for the move in gold appears to be recent strength in the US dollar. As gold is traded against US dollars, a stronger currency pushes down the precious metal in relative terms. Looking at trading volumes on futures exchanges (COMEX gold), yesterday's move down was accompanied by relatively average volumes. If the move down coincided with significant volumes, it would threaten our bullish stance on the precious metal. Today, gold is receiving limited support from falling US Treasury yields. 10-year US Treasuries are currently yielding 2.764%, while 30-year Treasuries are just above 3%. Our short-term and medium-term outlook on gold remain bullish.
After its most recent bottom around $1,353, gold is now above $1,324.
As gold makes gains, 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.
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.