Considering that U.S. equities have had a strong upside move today, with the NASDAQ Composite closing at a new record high price at 8,013.33, gold futures are holding up rather well and currently trading up $3.60 at $1216.90. This is a nominal price gain; however when taking into account the incredibly strong risk-on market sentiment on the surface, it is impressive.

In his first speech as Fed Chairman at the economic conference in Jackson Hole, Jerome Powell’s speech resulted in the U.S. dollar trading lower and a strong upside move in gold pricing.

In his speech, Powell said that the central bank's gradual path of interest rate hikes remains “’appropriate’ as there does not seem to be “an elevated risk of overheating.”

As of 3:20 PM Eastern standard time, gold futures are trading under substantial pressure. The most active December Comex contract is currently down $11.50 and fixed at $1,191.80. As in previous instances where gold has traded to lower pricing, it is the U.S. dollar that is a significant contributor to that falling price.

A combination of factors collectively have had a net positive effect on the pricing for gold futures today. The most prevalent factor moving gold prices higher today was dollar weakness. Now, for the fifth consecutive day, the dollar has lost value as it trades against a basket of foreign currencies.

Gold futures have shown a respectable gain on the day and, as of 4:15 PM Eastern standard time, the most active December Comex contracts are trading up $6.70 and currently fixed at $1,201.30.

On Friday of last week, we spoke about the fact that over the last two trading days (Thursday and, Friday) we had seen the first real signs of gold pricing finding support and reaching a potential bottom.

Make no mistake about it; this was a terrible week for those wishing to see gold prices move higher. In fact, gold prices lost almost 3% on the week - one of the most significant weekly drops in over a year. However, the last two trading days have provided an indication that gold pricing might, in fact, be finding some price support.

Gold continues to trade lower, effectively trading and closing at the lowest price point this year. In trading overseas, last night gold futures hit a low of $1,167.10 before recovering. As of 3:30 PM Eastern standard time, December Comex futures are currently trading off by $4.20 and fixed at $1,180.80.

Gold prices declined dramatically today with December futures trading to a low of $1,180. As of 4:30 PM Eastern standard time, gold futures have come off of the lows and are trading at $1,182.30, which is a net decline of $18.40.

After yesterday’s dynamic price drop, the real question is will gold go lower or will it rally from here? The possible answers are entirely different when you look at the technical data and when you then look at the fundamental events behind the selloff in gold.