Yesterday gold futures closed at $1899.90 after trading to an intraday high above $1901. As trading resumed in Australia, it seemed that gold prices were trying to form a base above that elusive key psychological level. The high in trading last night took gold futures basis the most active June 2021 contract to $1913.30.

As we spoke about yesterday, the market forces and events which have taken gold to higher pricing since the end of March are still dominantly in play. The two primary forces are dollar weakness and data indicating an uptick in inflation. These two factors greatly affect Treasury yields, and in turn, lower Treasury yields increase the bullish sentiment in gold. Recently the U.S.

The market forces and events which have taken gold to higher pricing since the end of March are still dominantly in play. The two primary forces are dollar weakness and data indicating an uptick in inflation. These two factors greatly affect treasury yields and in turn treasury yields affect bullish or bearish sentiment in gold. Recently the U.S.

To paraphrase Investopedia, the golden cross is a chart pattern. A bullish signal in which a market’s moving average moves above a longer-term moving average. The golden cross is a bullish breakout pattern formed from a crossover involving a short-term moving average (such as the 50-day moving average) breaking above a longer-term moving average (such as the 100-day moving average).

As of 5 PM EST gold futures basis, the most active June 2021 Comex contract is currently fixed at $1877.40 off $4.10. Gold traded to a high today of $1885.30, which is below yesterday’s high. However, it traded to a higher low of $1864.20 when compared to yesterday’s trading range.

Federal Reserve Chairman Jerome Powell said in his last press conference. “We’re not thinking about raising rates.

Although gold prices are only modestly higher in trading today, it is the fundamental rationale that is creating the current market sentiment, which has certainly shifted to a bullish demeanor.

Their back! Beginning at the end of March, when gold bulls witnessed gold prices continue to trade lower, hitting a bottom at $1640 there was an air of pessimism that surrounded them. Although gold began to trade-off of those lows by the end of March, gold retested the lows at that price point creating a double bottom.

While gold posted strong gains on the day, on a week-by-week basis gold futures closed very close to its opening price on Monday. Much of this week’s price swings were directly tied to wild variations in dollar strength as well as dollar weakness. On Wednesday the dollar index traded to a low of 90.12, and closed at 90.67 gaining approximately ½ a percent.

Traditionally gold has reacted to inflation with a direct positive correlation. In other words, higher inflation would typically create bullish market sentiment for the precious yellow metal. Yesterday’s report by the Bureau of Labor Statistics indicated that inflation rose by 0.8% in April, which takes the annual inflation rate to 4.2%, which is the highest level of inflation seen since 2008.