Although gold prices are only modestly higher in trading today, it is the fundamental rationale that is creating the current market sentiment, which has certainly shifted to a bullish demeanor.

Their back! Beginning at the end of March, when gold bulls witnessed gold prices continue to trade lower, hitting a bottom at $1640 there was an air of pessimism that surrounded them.

While gold posted strong gains on the day, on a week-by-week basis gold futures closed very close to its opening price on Monday. Much of this week’s price swings were directly tied to wild variations in dollar strength as well as dollar weakness.