Gold prices are currently slightly higher. Yesterday, the precious metal moved lower as the US dollar made broad gains (particularly against the yen and the euro). US Treasury yields also moved up yesterday, hurting gold given the precious metal's inverse correlation with real interest rates. Today, gold is making gains thanks to the US dollar trading slightly lower, while US Treasury yields are mostly flat.
As we mentioned in previous editions of the gold daily update, gold has been benefiting from weakness in the US dollar despite rising geopolitical risks. While the US is likely to implement more tariffs on Chinese trade (a development we covered in our US dollar daily update earlier today), reactions in the US dollar have been limited. If the dollar remains stable while risks rise, expect gold prices to strengthen in response. Our short-term outlook and our medium-term outlook on gold is bullish.
After its most recent top around $1,353, gold is now above $1,334.
As gold strengthens, we are now bullish on gold 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.