As we start this week -- traders, investors, and market technicians are waiting for the monthly FOMC meeting to commence. Beginning tomorrow and concluding on Wednesday, the Federal Reserve will meet. Market participants will be listening for any indication as to the direction of the Fed’s monetary policy.

Gold futures closed lower on the week, losing value for the third consecutive week. More foreboding is the fact that not only has gold closed at the lowest value this year, but the last time gold futures closed near this level was almost a year ago.

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.