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.

As of 5:05 PM EDT gold futures basis, the most active December Comex contract is currently fixed at $1735.60 after factoring in today’s decline of $14.10 or 0.81%. September silver is also trading lower with the most active futures contract currently fixed at $18.50 after factoring in today’s decline of $0.407 or 2.19%.

Powell’s resolute keynote speech on Friday shook the financial markets to their core. The effect that Chairman Powell had when he rebuffed expectations of the Fed’s tempered monetary policy was strong. His message underscored that the Federal Reserve will continue its hawkish monetary policy and keep raising interest rates in its fight against the spiraling level of inflation.

Chairman Powell delivered a resolute keynote speech at this year’s Jackson Hole Economic Symposium this morning that shook the financial markets to their core. In essence, his message underscored that the Federal Reserve will continue its hawkish monetary policy and keep raising interest rates in its fight against the spiraling level of inflation.

Each year the Kansas City Federal Reserve hosts one of the most important economic symposiums in Jackson Hole, Wyoming. This major event is attended by the top central bankers in the United States and globally. This year’s event, the 2022 Economic Policy Symposium, "Reassessing Constraints on the Economy and Policy," will be held August 25-27.

This year’s Jackson Hole Symposium will unquestionably be the most important event this month. Central bankers and analysts will face a unique economic backdrop much different than last year’s symposium. Last year inflation was running at approximately 5% and the assumption amongst the vast majority of central bankers and policymakers was that inflation was transitory.