Gold prices are currently slightly lower. Yesterday, the precious metal ended the day flat around $1,290 after trading in a fairly wide range. While gold fell in the first half of the day thanks to a rising US dollar, the buck gave up much of its earlier gains by the end of the day. As a result, gold prices strengthened and ended the day unchanged.
Looking at gold today, the precious metal is selling off as both the US dollar and bond yields make gains. 10-year US Treasuries are currently yielding 3.11% while the US dollar index is trading above 93.30. As both the currency and bond yields are looking overbought on a short-term time frame, we expect some temporary relief for gold prices. The caveat is that gold remains in a bearish trend, and we expect the precious metal to continue weakening over the longer term. When the trend is bearish, gold can also continue weakening even if both the dollar and treasury bond yields look due for a pullback. Our short-term and medium-term outlook on gold remains bearish.
After its most recent top around $1,320, gold is now above $1,288.
As gold prices give up recent gains, we are now bearish 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.
As gold weakens, we are now bearish on the precious metal in the medium-term. The precious metal is trading within normal conditions. This is based on technical indicators on a weekly chart.