Magnetic sensing technology can be used to detect changes, or disturbances (e.g., changes in magnetic field strength), in magnetic fields and can be used to measure the precise location/positioning of an electronic device in proximity to a magnetic source. In order to avoid interference by earth's static magnetic field, a modulated magnetic field can be used for magnetic based proximity sensing. Received modulated magnetic field signals can be demodulated to determine proximity of the sensor to the source of the modulated magnetic field. Devices such as gloves or devices with fingertip nodes based on receiving modulated magnetic fields can be used to detect user hand position.