Market participants are waiting for the release of the minutes from the November FOMC meeting which will occur on Wednesday. The minutes will most likely be the most important financial report released during this shortened holiday week. The Thanksgiving holiday is celebrated in both the United States and Canada.

The Merriam-Webster dictionary defines sentiment as, “an attitude, thought, or judgment prompted by feeling: predilection.: a specific view or notion: opinion.: emotion.: refined feeling: delicate sensibility especially as expressed in a work of art.: emotional idealism.”

This has been a most interesting year for investors and traders who have been active in gold. There have been two completed trends that contained both a multi-month rally and a multi-month correction. During the first week of January gold was already in rally mode, and opened at $1827 on the first day of trading, January 3.

Gold has shifted gears from extended rallies followed by a multi-month correction to its current almost parabolic upside move. This move began during the first week of November and continues to this day. In fact, we are getting the first indications that the extended correction at least for now has concluded and a new stage has begun.

Russia’s invasion of Ukraine has been escalating to accelerated levels of military action.

Federal Reserve Governor Christopher Waller told a conference in Sydney, Australia today, "We're not softening...Quit paying attention to the pace and start paying attention to where the endpoint is going to be. Until we get inflation down, that endpoint is still a way out there."

The U.S. dollar just had its largest weekly drop in 2022. On Monday the dollar index opened at approximately 111.034 and as of 3:23 PM, EST is currently fixed and closed at 106.275. In a single week, the U.S. dollar index lost 4.824 points which is a percentage decline of - 4.286%.

Today’s CPI report came in well underestimates even by the forecast by the Federal Reserve Bank of Cleveland’s Inflation Nowcasting. The Federal Reserve Bank of Cleveland’s forecasting tool as recent as yesterday was projecting that the CPI index for October would come in at 8.09%. This morning the BLS reported that the CPI index for October increased by 7.7% year-over-year.

Financial Market analysts and market technicians understand that it is fundamental events that cause price changes in all asset classes including stocks, commodities, goods, and services.

Gold futures basis the most active December contract opened in trading today at $1678. After trading to a low of $1667, December gold broke strongly above the 50-day moving average in a single hour. The first hour of trading in New York contained almost the entire trading range in gold.