Gold prices are currently flat. Yesterday, the precious metal ended the day higher as the US dollar weakened. While gold was initially weaker yesterday, the precious metal gained as the dollar sold off thanks to strength in the euro and the Canadian dollar. The euro is strengthened as the ECB is now more likely to end its quantitative easing program later this year, while the Canadian dollar rose thanks to rate hike expectations.
Looking at gold today, the precious metal is benefiting from slight weakness in the US dollar. On the other hand, US Treasury yields are strengthening (10-year US Treasuries are currently trading at 2.80%), hurting gold prices (gold trades inversely to real rates). Our short-term outlook is neutral, while our medium-term outlook on gold is bullish.
After its most recent top around $1,353, gold is now above $1,336.
As gold runs out of steam, we are now neutral 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.