'Gold price to remain bearish in medium-to-long term'

New York (Aug 8)  The outlook for gold remains bearish, said Lukman Otunuga, research analyst at FXTM. The metal has drawn support early Tuesday as the U.S. dollar eases.

“While the precious metal could struggle higher in the near term if the dollar continues to weaken, the medium- to longer-term outlook for gold remains bearish,” Otunuga added.

 It is becoming quite clear that the dollar is starting to outshine gold as a safe-haven asset while expectations of higher U.S interest rates have translated to further pain for the zero-yielding metal.

 The analyst also said gold looks bearish on the technical charts, with consistently lower lows and highs. Sustained weakness below $1,213 could invite a decline towards $1,200.

 Alternatively, a solid breakout and daily close above $1,213 may trigger a rebound towards the $1,224 lower high, Otunuga added.

ScrapRegister