As of 5:05 PM EDT gold futures basis, the most active December contract is currently fixed at $1729.50 after factoring in today’s gain of $16.60 or 0.97%. Dollar weakness was a primary contributor to moving gold higher accounting for approximately 60% of gold’s $17 price increase. Currently, the dollar index is fixed at 109.55 which is a daily decline of 0.59%.

Well before the Federal Reserve enacted its first interest rate hike in March the dollar has been on a dynamic upside surge. In July 2021 the dollar index traded to a low of 89.45 and in just over a year moved to a 20-year high with the dollar index currently trading above 110. When analysts talk about dollar strength it is a little misleading on the surface.

Precious metals, U.S. equities, U.S. debt instruments, and the dollar continue a major recalibration as market participants factor in interest rates moving much higher for longer than anticipated before Jerome Powell’s Keynote speech on Friday of last week.

Gold prices continue to trade under pressure resulting in another double-digit price decline today. As of 5:23 PM EDT gold futures basis, the most active December 2022 Comex contract is trading down by $13.60 or 0.78% and currently fixed at $1722.70. Just as in yesterday’s trading activity current pricing is just above the daily low of $1720.60.