What was largely attributed by many analysts as short covering during the last trading day of the quarter and market participants buying the dip. Gold futures gained $22.60, with the most active April 2021 contract currently fixed at $1708.60. That being said gold lost just under 10% of value in the first quarter of this year challenging the record of the last quarter of 2016.

There is a dichotomy between the optimism expressed by market participants that the pandemic and recession have run their course and we will soon return to a new normal, versus the reality of the recent uptick in new Covid cases across the United States.

Gold, both spot and futures, traded significantly lower today in active trading. Gold futures basis the most active April 2021 Comex contract gave up $22.30 and is currently fixed at $1710.00. Spot gold, according to the KGX (Kitco Gold Index), gave up $21.60 and is currently fixed at $1711.70. Dollar strength accounted for nominal damage amounting to a decline of $4.30.

The U.S. dollar has been on a virtual roller coaster ride when we look at the relative value of the dollar index from the end of 2016 until current pricing. In December of 2016, the dollar index rose to a high just above 103.

There have been numerous factors that have pressured both gold and silver pricing lower. A strong U.S. equities markets which hit numerous all-time highs over the last six months and Bitcoin’s rising value being prevalent as causes for both gold and silver pricing to trade under pressure. However, it has been dollar strength, coupled with the recent rise in yields of U.S.

Today both Chairman of the Federal Reserve Jerome Powell and the secretary of the United States Treasury Department Janet Yellin completed their two-day congressional testimony. In short, their testimony resulted in dollar strength as it did yesterday. Also, unlike yesterday, yields in 10-year U.S. Treasury notes declined slightly.

Today both Chairman of the Federal Reserve Jerome Powell and the secretary of the United States Treasury Department Janet Yellin began a two-day congressional testimony. In short, their testimony resulted in dollar strength which was the primary factor taking gold prices lower.

Unlike the focus that has been so prevalent over the last month or so, today’s fractional decline in gold pricing is not due to Bitcoin, the dollar, or to current yields of the U.S. 10-year Treasury note. Currently, the dollar is down 0.17% and fixed at 91.77. The 10-year note also declined from the highs witnessed last week and is currently fixed at 1.679%.

According to Wikipedia, “Read my lips: no new taxes” is a phrase spoken by then-American presidential candidate George H. W. Bush at the 1988 Republican National Convention as he accepted the nomination on August 18. However, the sad truth is he made a pledge that he was not able to keep.

In the words of ‘Hans and Franz,’ characters from a Saturday Night Live skit by Dana Carvey and Kevin Nealon, Fed Chairman Jerome Powell wants to pump … you up, America.”