The entire precious metal complex experienced a moderate gain today. Gold as of 3:30 PM EST is currently trading at $1471.50, which is a net gain of three dollars on the day. The moderate gains in gold pricing can be directly attributed to two primary factors. First is dollar weakness, the dollar index currently down .23%, and fixed at 97.645.

On Monday, November 11^th, we first spoke about two different technical indicators used to mathematically quantify market sentiment.

On Monday, November 11^th, we first spoke about different technical indicators used to mathematically quantify market sentiment. We first spoke about one of the most widely accepted technical indicators which is used to identify current market sentiment; a simple moving average.

In a speech to the Economic Club of New York today, President Trump said, “We’re close -- a significant phase one deal could happen, could happen soon.” He said this within the context of a statement claiming that China is “dying” to make a trade deal with the U.S. and the first step of a broader agreement is close to being completed.

While it is an accepted fact that fundamental events shape the financial markets, many analysts use technical indicators as a way to mathematically quantify market sentiment. One of the simplest and most widely used technical indicators used to determine a current trend for a stock or commodity are moving averages.

It seems that from day to day, the news regarding forward progress, and concessions made by the United States and or China seem to change. The one certainty is that the words of the officials on both sides lack longevity.

According to ABC News yesterday it was announced that China and the U.S. agreed to rollback tariffs in phases, as told to them by a Chinese official.

Both gold and silver sold off sharply today in response to positive remarks regarding the trade war. Although very little detailed information concerning the initial agreement from the negotiations held last month in Washington are known, today China announced that it had agreed with the United States on removing some of the existing trade tariffs.

According to Reuters News Service, the long-awaited meeting between President Trump, and the Chinese President Xi Jinping which was originally scheduled to be held this month in Chile has been delayed. The face-to-face meeting between the leaders of these two superpowers was intended to allow them to sign a long-awaited interim (partial) trade deal.

 Photo Souce A.P Wire Service

The Latest FOMC meeting concluded with the expected rate cut. The Federal Reserve cut their Fed funds rates by a ¼% (25 basis points) to take the current spread to 175 bps. (1 ¾%) to 200 bps (2%). This action resulted in an increase of bullish sentiment in both stocks and gold.

We reported that there was a high probability that the Fed would report and implement a rate cut.