There is a dichotomy between the optimism expressed by market participants that the pandemic and recession have run their course and we will soon return to a new normal, versus the reality of the recent uptick in new Covid cases across the United States.

Gold, both spot and futures, traded significantly lower today in active trading. Gold futures basis the most active April 2021 Comex contract gave up $22.30 and is currently fixed at $1710.00. Spot gold, according to the KGX (Kitco Gold Index), gave up $21.60 and is currently fixed at $1711.70. Dollar strength accounted for nominal damage amounting to a decline of $4.30.

The U.S. dollar has been on a virtual roller coaster ride when we look at the relative value of the dollar index from the end of 2016 until current pricing. In December of 2016, the dollar index rose to a high just above 103.

There have been numerous factors that have pressured both gold and silver pricing lower. A strong U.S. equities markets which hit numerous all-time highs over the last six months and Bitcoin’s rising value being prevalent as causes for both gold and silver pricing to trade under pressure. However, it has been dollar strength, coupled with the recent rise in yields of U.S.

Today both Chairman of the Federal Reserve Jerome Powell and the secretary of the United States Treasury Department Janet Yellin completed their two-day congressional testimony. In short, their testimony resulted in dollar strength as it did yesterday. Also, unlike yesterday, yields in 10-year U.S. Treasury notes declined slightly.

Today both Chairman of the Federal Reserve Jerome Powell and the secretary of the United States Treasury Department Janet Yellin began a two-day congressional testimony. In short, their testimony resulted in dollar strength which was the primary factor taking gold prices lower.

Unlike the focus that has been so prevalent over the last month or so, today’s fractional decline in gold pricing is not due to Bitcoin, the dollar, or to current yields of the U.S. 10-year Treasury note. Currently, the dollar is down 0.17% and fixed at 91.77. The 10-year note also declined from the highs witnessed last week and is currently fixed at 1.679%.

According to Wikipedia, “Read my lips: no new taxes” is a phrase spoken by then-American presidential candidate George H. W. Bush at the 1988 Republican National Convention as he accepted the nomination on August 18. However, the sad truth is he made a pledge that he was not able to keep.

In the words of ‘Hans and Franz,’ characters from a Saturday Night Live skit by Dana Carvey and Kevin Nealon, Fed Chairman Jerome Powell wants to pump … you up, America.”

Eight times per year, members of the Federal Reserve officially meet and hold their Federal Open Market Committee. The FOMC is composed of 12 members, seven of which comprise the board of governors, with the remaining five being presidents of Federal Reserve banks.