As many economists had forecasted a big uptick in inflationary pressures, on this occasion they got it right. Economists polled by Dow Jones and The Wall Street Journal predicted that we would see ½ a percent increase in the rise of inflation as monitored through the consumer price index (CPI).

Although gold closed fractionally higher in New York today, as of 5:35 PM EST, gold futures basis the most active August 2021 Comex contract is trading down $3.70, currently fixed at $1890.70.

Gold futures opened at $1901.60 this morning; it is currently down $3.10 and trading at $1895.80. Unquestionably gold continues to remain the primary precious metal that is a hedge against inflation. Gold has the same buying power as it has had for the last 100 years.

On Thursday, June 3, gold had a substantial price decline opening at $1910 and closing $37 lower, settling at approximately $1873 per ounce. It was a knee-jerk reaction in response to the ADP jobs report, which came in well above expectations by economists polled by the Wall Street Journal and Dow Jones and Reuters.

The underlying characteristic of gold pricing over the last 48 hours has been akin to a wild carnival ride. It began yesterday when ADP released its National Employment Report which concluded that private payrolls increased by 978,000 jobs last month. The report came in well above the economists polled by Reuters, and the Wall Street Journal.

Gold prices tumbled following the release of the ADP private sector’s jobs report which came in well above analysts’ expectations. Economists surveyed by the Wall Street Journal had forecast that today’s ADP report would indicate an increase of 680,000 new private sector jobs added in May.

There is no doubt that the number one question on the mind of gold investors and traders is, “What is the current state of inflation in the United States?” They are pondering whether or not current rises in real costs of living are ‘transitory’ or ‘sticky’.

As of 4:30 PM Eastern Standard Time, the new most active Comex futures contract for (August 2021) is currently fixed at $1902.10 after factoring in today’s decline of $3.30. However, spot or Forex gold is currently trading under $1900 per ounce and fixed at $1899.40, a net decline of just over $7 on the day.

With extremely different fundamental events influencing both gold, a precious metal, and copper, an industrial metal, both metals in terms of percentage gains had absolutely stellar performances over the last two trading months.

With only one more trading day in the month of May, gold futures have precariously clung just below $1900 per ounce. Today gold futures basis the most active June 2021 contract traded to a high of $1906.50 and a low of $1890.80.