Dollar weakness has been the force moving gold higher over the last 3 days

New York (Feb 3)  Over the last three trading days, the vast majority of price advances in gold can be directly attributable to dollar weakness with only fractional gains due to market participants bidding the precious yellow metal higher. The KGX (Kitco gold index) clearly illustrates this point. Today for example spot gold gained $5.60, with only $0.40 added from trading activity. The remaining gain of $5.20 was a direct result of dollar weakness.

Gold futures basis the most active April 2022 contract had a net gain today of $5.70 which is an increase of 0.32%. This occurred as the dollar declined giving up 0.39%. The dollar index is currently fixed at 95.995.

Yesterday April gold gained $4.90 closing at $1801.30 which is a net increase of 0.27%. Concurrently, the dollar index lost 0.29%. On Monday, April gold gained $11.10 and closed at $1797.70, which is a net gain of 0.62%. Simultaneously the dollar declined by 0.63%. The overwhelming majority of gains witnessed since Monday have been the direct result of the dollar losing almost the exact percentage drawdown as the percentage gain in gold.

KitcoNews