Gold

For now, at least, my near-term gold outlook remains modestly bearish, even if I have a strong long-term bullish bias towards gold and especially silver.

GBP/USD rises after UK GDP boost and amid a weaker USD. Gold rises as Treasury yields and USD ease lower. PPI and retail sales data are up next.

Gold prices came into the day with a bullish backdrop but that has dimmed after the CPI release earlier on the day.

GBP/USD rises amid a weaker USD, but gains could be limited. Gold rises as Oil, Treasury yields slip, central bank buying remains strong.

Gold came under renewed pressure in the first half of Monday’s session, alongside weakness across the major FX pairs, especially the EUR/USD. The gold weakness follows a relatively sharp two-day rally at the end of last week, which had raised hopes that the metal may finally have found a floor.

Gold has bounced from a major inflection zone, but bulls still need follow-through as next week’s CPI report puts the recovery to the test.

Markets went from risk off to risk on yesterday afternoon and we have since kicked on with some follow-up buying of stocks, gold and silver, while the dollar has also shown signs of weakness. Risk appetite turned positive after bond yields and oil prices both retreated yesterday.

Gold is attempting to break out after a brutal selloff, just as the US dollar and Treasury futures show signs of turning. Historical extremes, shifting momentum and key technical levels suggest a potentially important moment for gold traders.

Gold put in a sizable underside wick on the daily chart yesterday and this speaks to the possibility of near-term bottoming in the metal following a strong sell-off over the past six weeks.

As the trading week continues to unfold, gold is once again facing difficulties in regaining momentum in the short term. This can be seen in the performance of the last three trading sessions, where the metal has declined by approximately 0.9%, resuming a bearish dynamic that has once again become evident in recent market activity.

Gold is testing a major inflection zone as stretched downside momentum raises the risk for a reaction into key support.

Gold remains stuck between a rock and a hard place, with the directional bias remains tilted to the downside. While dovish Federal Reserve repricing and lower oil prices in the last couple of days has provided some support, the metal is still undermined by the elevated yields and the risks that oil prices may rebound and create fresh volatility for financial markets.