Gold

Dollar strength and mild selling pressure combined were the primary contributors to today’s decline in gold pricing. Gold futures basis the most active August contract is currently down by $9.40, a net decline of just over ¾%, and fixed at $1,222.40. Today’s decline has taken all of yesterday’s gains and then some.

At least for today, it seems the pendulum is swinging into bullish territory in regards to gold pricing. Recent declines in gold pricing have been based on two primary factors. First, dollar strength has weighed heavily on gold pricing. Secondly, traders have added selling pressure to the equation.

“I’m going to raise a fuss, I’m going to raise a holler, about working all summer just to try to earn a dollar.”

It seems that at least over the last few months, gold is caught up in summertime trading pressure, leading up to today’s action: a day with very little activity or price change. In the immortal words of Eddie Cochran, there ain’t no cure for the summertime blues.

Gold futures are trading under pressure today with the most active August contract currently trading down $6.40 and fixed at $1,224.70. This makes for a net decline of just over half of one percent today.

Although gold is trading lower on the week, Friday’s trading activity resulted in moderately higher pricing with gold closing up seven dollars. August Comex futures are currently fixed at $1,231 after adding today’s net gain of 0.57%.

Gold has been under major pressure and losing value since April of this year when the precious yellow metal traded to the highest value this year and began to sell off. Since that time, you could say that gold prices have been free falling.

Although gold futures are trading slightly higher, today’s trading activity is highlighted by the fact that gold traded to a lower low and a lower high than yesterday. Currently, gold futures (August Comex contract) are trading at $1,227.80, which is a net gain of $0.50 on the day. It is the intraday low that is most noteworthy.

Gold broke below its major support level at $1,238 today in reaction to the Federal Reserve Chairman Jerome Powell’s testimony to the Senate Banking Committee. Gold futures (August Comex contract) closed dramatically lower settling at $1,227.50, losing $12.20, a net decline of almost a full percentage point.

U.S dollar weakness has not helped gold close in the positive today. Traders took the dollar index lower today, resulting in a net decline of just over a quarter percent. The dollar is currently fixed at 94.24, which is a decline of 25 points on the day.

Even with the U.S. dollar trading off of the highs achieved today, and posting a daily decline, gold was unable to sustain any price gains. August Comex futures are currently trading at $1,241.60, which is a net decline of five dollars on the day (-0.40%).