As of 3:55 Pm EDT gold futures basis, the most active December contract is currently fixed at $1800.90 per ounce after factoring in today’s decline of just over $12 or 0.66%. Unlike other days the dollar is not contributing to the net change of gold. Currently, the dollar index is in essence unchanged up 0.01% and fixed at 105.090.

The Bureau of Labor Statistics released the Consumer Price Index for July indicating that inflation came in below forecasts by economists polled by Reuters and the Wall Street Journal. Economists polled by various News services predicted a slight decline in inflation from 9.1% in June to 8.8% in July.

Market participants, analysts, and economists are eagerly awaiting tomorrow’s U.S. consumer price index report for July, which will be released at 8:30 AM EDT. It is widely anticipated that tomorrow’s report will show a fractional decline in “headline” inflation (which includes energy and food).

Inflation remains one of the most prevalent issues on the minds of Americans. Last month the government reported that the Consumer Price Index rose to its highest level in 41 years coming in at 9.1% YoY.

Today the most important report of the week, the jobs report was released. Economists were expecting an additional 258,000 new jobs added last month. The Labor Department’s report revealed that the U.S. economy has had robust job growth last month adding over 500,000 jobs in July. The exceedingly strong numbers of today’s report diminish concerns about the United States entering a recession.

This week gold futures have traded above $1800 twice, on Tuesday and today. But today’s break above $1800 differs because gold closed above this key psychological price point. Today’s solid gains were based upon two major fundamental concerns, these fears were both foreign and domestic in origin.

Domestic fears of a recession

Market participants are once again focusing upon recent statements by multiple voting members of the Federal Reserve as to their next set of rate hikes over the remaining FOMC meetings this year. While the dollar had fractional gains today, it was the recent comments by Federal Reserve officials that warranted trader’s attention.

Gold is always greatly influenced by dollar strength or weakness. Because gold is paired against the U.S. currency, the dollar is always a major component of price changes. Today extreme dollar strength was the dominant driving force that caused a modest decline in gold pricing.

Extensive exposés by Bloomberg and Reuters News covering the current trial of JPMorgan Chase & Co.’s gold traders revealed shocking details of how deep the rabbit hole went, and how massive the fraud was. It seems that for well over a decade the Wolf (JPMorgan) guarded the golden goose.

Both gold and silver prices have spiked dramatically higher over the last two weeks and accelerated their upward momentum over the last two days. Gold and silver prices have moved to new multiweek highs in response to three major reports and events that have confirmed what the American public has been acutely aware of for some time.