With the FOMC meeting scheduled to begin tomorrow, market participants have continued the bearish market sentiment so prevalent last week. Since reaching a high just below $1300 on June 6th, gold prices have traded lower. Gold prices have continued to decline for the last four consecutive trading days.

Gold had been trading dramatically higher from the recent low of $1215 achieved on May 9^th. Over the last month, gold pricing had gained roughly $84, trading at a new yearly high on Tuesday of this week, when prices reached $1298 per ounce. This price point was a little more than a dollar above the former yearly high achieved during the week of April 17^th.

Two key events occurred today which have had an adverse impact on gold prices, being cited as underlying factors for today’s dramatic selloff. Beginning in Europe, the European Central Bank (ECB) held a monetary policy meeting which resulted in unchanged interest rates. This put selling pressure on the Euro dollar and was, therefore, favorable for the U.S. dollar.

Today the former director of the FBI, James Comey, released a written transcript of the prepared opening statement he will make tomorrow in his testimony to the Senate Committee on Intelligence. This seven-page document details the former director’s contact with President Trump, going over his interactions meeting by meeting, phone call by phone call.

A trifecta of geopolitical events on Thursday, along with a weaker U.S. dollar and recent weak U.S. economic data, have all contributed as underlying factors taking gold future prices to a new yearly high. 

Today precious metals prices have remained firm in a narrowly defined range, trading modestly higher. Market participants await the unfolding of three distinct events that will undoubtedly influence future pricing. Until then, traders and investors will be in a holding pattern, characterized by a wait and see attitude as events develop.

The U.S. Labor Department released the job's report numbers for May this morning. Initial estimates for nonfarm payrolls new jobs added in May were 185,000, The actual numbers came in way below expectations at just 138,000. 

With the U.S. Labor Department releasing job report numbers in under 18 hours, traders and investors could see some fireworks in the market tomorrow. Today, the U.S. ADP jobs report released its numbers, which came in way above the initial estimates. Estimates expected about 180,000 jobs to be added in the month of May. The actual numbers released today came in with 253,000 new jobs added.

According to the beige book which was released today, the U.S. economy has expanded at a moderate pace. This is based on activity from early April through the latter part of May. This information is supportive of many Fed members’ sentiments to implement an interest rate hike in June.

Traders and investors witnessed a mixed bag in the precious metals markets today, with gold and platinum trading lower while silver and palladium posted gains. As of 330 Eastern Standard Time, gold futures are currently off by almost seven dollars on the day, with a net drawdown of just over a half of a percent at $1261.40.