Gold

EDITORS NOTE We recorded an interview live at 9 PM Eastern Standard Time, I was part of that live podcast to address the record levels of inflation as revealed today. The video is below the Weekend Review

Tomorrow the U.S. Bureau of Labor Statistics will release the inflationary numbers vis-à-vis the CPI index. This report will be a critical component that the Federal Reserve will review before releasing its adjusted monetary policy. On Wednesday of next week, the Federal Reserve will release the statement including the revised dot plot and a press conference by Chairman Jerome Powell.

On Friday, November 10 the U.S. Bureau of Labor Statistics will release its most current report on inflation for November 2021. Inflationary pressures have spiraled out of control and since June have consistently been at or above 5.3%. Currently, economists are forecasting that Friday’s report will show that inflation has increased by 0.7%.

Gold futures basis the most active February 2022 contract had modest gains today and as of 5:25 PM EST is currently fixed at $1784.90. Gold traded to a high of $1789.30, and a low of $1772.40. The current price matches precisely with a technical level we have identified using a Fibonacci retracement.

Market participants focused on the most current events in the financial market that directly affect gold pricing which is higher treasury yields and a stronger U.S. dollar. The dollar gained 18 points today (+0.19%) taking the dollar index to 96.295. The United States 10-year treasury note gained 0.078 taking its current yield from 1.357% to 1.435%.

For the first time since November 17 gold futures had substantial gains, and most importantly closed very near the highs of the day. As of 4:00 PM EST gold futures basis, the most active February 2021 contract is currently fixed at $1784.40 which is a net increase of $21.70, or a gain of +1.23%. Gold traded to a low of $1766 and a high of $1788.

Yesterday’s commentary first began with the news that the CDC had confirmed that they have identified the first case of the Omicron variant in America.

The CDC today confirmed that California and San Francisco Department of Public Health has identified and confirmed that a recent case of the Covid 19 virus was the variant Omicron. This news is not alarming, it has always been a matter of when and not if cases of this new variant would begin to surface globally.

It was an extremely volatile day for market participants who trade gold. The first part of the trading session can be characterized by a surge in gold pricing. Concerns about the new Covid-19 variant "Omicron" took the precious yellow metal back above $1800, hitting a high of $1811.40 in the most active February 2022 Comex contract.