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.
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.