Although gold prices have pulled back substantially from the highs achieved yesterday and today, the precious yellow metal did close higher on the week. More importantly today’s low which came in at $1421.10 matches the former resistance trend line which was created from a series of lower highs on a daily gold chart.

It seems when it rains it pours, as multiple variables collectively had a profound and bullish impact on market sentiment for both gold and silver. Gold futures gained over 1.5% in trading today, while silver gained almost 2.5%. These events include a statement by John Williams President of the Federal Reserve Bank of New York. The news of the U.S. Navy shooting down an Iranian drone.

Both gold and silver are trading higher today, with both precious metals showing strong and respectable gains on the day. Silver is continuing its remarkable breakout gaining over 2% in trading today. Gold has closed at the highest trading point this year, and in fact the highest trading point over the last six years, gaining 1.16% in trading today.

As you know, on any given day the price change in gold is the result of the combination of dollar strength or weakness and bullish or bearish market sentiment bidding the precious yellow metal higher or lower. In today’s case the vast majority of gold’s decline can be directly attributed to dollar strength.

Gold had a respectable gain today, however compared to the other metals in the precious metals group had the smallest percentage gain on the day. As of 4:40 PM EDT gold futures basis the most active August contract is currently trading at $1416, which is a net gain of $3.80 on the day.

Although gold’s weekly range was absolutely dwarfed by the highs and lows achieved during trading last week, the end result was very solid and respectable gains. Considering that gold prices opened at roughly $1400 per ounce at the beginning of this week, and as of 4:30 PM EDT is trading at $1416.30; the precious yellow metal was able to continue the upside rally that has been in play.

In a two-day testimony to Congress Federal Reserve Chairman Jerome Powell seemed to say all the right things as he underlined the revised monetary policy by the Fed which is much more accommodating than prior months. He has also continued to confirm rate cuts are almost a certainty on July 31. The question remains not whether or not the Fed will reduce interest rates, but by how much.

Gold prices went into overdrive today rekindling the dynamic rally which had been consolidating ever since reaching the yearly high at $1442, and $1440 6 trading days later. Gold which had found support just above $1388 the low achieved in trading yesterday skyrocketed well past $1400 an ounce.

This morning gold pricing opened under pressure immediately trading to its lowest price point today at $1387.50. By 11:00 AM EDT gold prices had risen slightly above $1400 per ounce as it hit the intraday high today of $1402.40 and as of 5:00 PM EDT gold futures basis the most active August contract fixed at $1399.60, which is a net decline of $0.40 on the day.

Market participants, traders and investors are anxiously awaiting this week’s testimony to Congress by the Chairman of the Federal Reserve, Jerome Powell. This is possibly the most important event to take place this week in regards to the future direction of gold.