Gold prices are currently slightly weaker. Yesterday, the precious metal ended the day flat after weakening significantly in the earlier part of the day. Thanks to rebounding risk sentiment, the dollar ended the day flat yesterday, in turning helping gold prices. In recent history, the gold rally has stalled as the dollar trades sideways and accelerating inflation becomes a concern.
Turning to gold trading today, US bond yields are currently rising (10-year US Treasuries are currently yielding 2.842%) while the dollar is slightly higher. As gold trades inversely to real interest rates, a higher dollar and rising nominal rates is a negative for the precious metal. Our short-term and medium-term outlook on gold remains bullish.
After its most recent top around $1,353, gold is now above $1,345.
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.