As expected, today, after the November FOMC meeting, both the statement and press conference by Jerome Powell acknowledged that they will begin the process of tapering their monthly asset purchases this month. Starting this month, they will reduce their monthly purchases of U.S.

The FOMC meeting for November began today and will conclude tomorrow. Most importantly, it will be the statement and following press conference by Chairman Powell that will draw the most attention. The statement will contain information about when the Federal Reserve will begin tapering their $120 billion monthly asset purchases.

Traders and investors are waiting for two key events this week that will shape the direction and price of gold. The first event will begin tomorrow and conclude on Wednesday when the Federal Reserve convenes and concludes its November FOMC meeting.

Gold prices dropped dramatically in trading today, making an intraday low of $1772.40. As of 3:25 PM EDT, gold futures are fixed at $1784.80. Today's selloff was predicated by dollar strength, with the dollar index gaining 0.90%, taking it to 94.165.  That is the primary market force that made both gold and silver prices lower on the day.

After posting an extremely robust GDP of 6.7% in the second quarter, analysts polled by the Wall Street Journal predicted that the GDP for the third quarter would show a significant contraction in the economic recovery. The forecast indicated that economic growth would slow down and that the GDP would come in around 2.8%.

Gold had modest gains today, partially recovering yesterday’s strong selling pressure resulting in just over a $12 decline. As of 5 PM EDT gold futures basis, the most active December 2021 contract is up $4.90 (+0.27%) and is currently fixed at $1798.30.

Yesterday inflationary fears stoked the fires of gold bulls taking the precious yellow metal above $1800 for the first time since the middle of September. Although rising inflationary concerns did not diminish, a robust U.S. stock market coupled with dollar strength took gold lower, back below $1800.

The Chairman of the Federal Reserve, Jerome Powell, and the Treasury Secretary of the United States, Janet Yellen, believe that current inflationary pressures are transitory based on pent-up demand, supply chain bottlenecks and labor shortages.

Today is the perfect example of how enhanced inflationary pressures and the reaction to higher inflation by the Federal Reserve create cross-currents that take gold higher as well as pressure pricing lower. Gold futures basis most active December contract opened today at $1783.70.

Gold futures are trading modestly lower with dollar strength being the primary force taking the precious yellow metal lower. As of 4:45 PM EDT gold futures basis most active December 2021 contract is down two dollars, or -0.11% and is fixed at $1782.10. Concurrently spot or Forex gold is currently jumping between fractional losses and fractional gains.