Gold Daily Updates

11 April 2018

Gold prices are currently higher. The precious metal has strengthened for the last four trading sessions in a row, mostly thanks to recent weakness in the US dollar. Looking at gold over the past few months, the precious metal has made a series of lower-highs since late January 2018. The last high in late March was around $1,355 (down from January's high of $1,358). Unless the dollar significantly depreciates from here, the $1,355 area should remain a significant area of resistance for gold. 

Today, gold is especially strong as both the US dollar and US Treasury yields are falling. 10-year Treasuries are currently yielding 2.795%, while 30-year Treasuries are currently yielding 3.014%. The US dollar is weakening against all major currencies except the Australian dollar and the Canadian dollar. We will upgrade our short-term outlook on gold to bullish later today, while our medium-term outlook remains bullish. 

After its most recent top around $1,353, gold is now above $1,344.

Short term outlook

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. 

Medium term outlook

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.