With the last trading day of September, and the quarter just completed, it seems that technical selling has moved gold pricing dramatically lower. In fact, gold futures opened at $1501.70 in New York this morning and within a few hours broke strongly below its 50-day moving average which is currently fixed at $1500.30.

Gold continues to trade lower on the day, breaking below $1500 per ounce for a brief moment before recovering. Currently the 50-day moving average is at $1498.80, a critical and key level that gold futures need to hold to technically remain in an uptrend.

Gold futures seem to be consolidating after yesterday’s sharp decline of almost $30. Yesterday it was a combination of an extremely strong US dollar along with robust selling pressure that took the precious yellow metal dramatically lower on the day.

According to yourdictionary.com, “buy the rumor, sell the fact – is an Investment & Finance Definition; A phrase often quoted by stock or futures traders that explains price declines that occur after an anticipated positive event has happened.”

Today gold continues its upward climb trading to a high of $1543.30 before settling just off of that price point at $1539.20 with respectable gains of $7.70 (+0.50%). Since gold prices hit a low of $1491.30 on Wednesday, September 18, traders have witnessed solid daily gains with consecutive higher highs, and higher lows.

Today both gold and silver continued the dynamic rally that been the undertone to the precious metals recently. Over the last five consecutive trading days gold has closed above its opening price. The last three trading days can be characterized as having higher highs, and higher lows than the previous day.

Today gold broke out and above the narrow and sideways trading range that has been so dominant over the last nine trading days. As of 5:00 PM EDT gold futures are currently trading up $17.80 (+1.18%), and fixed at $1524.00. Silver is also trading higher on the day however it is gold that is outperforming silver in terms of its percentage gain today.

On September 4^th gold futures closed at the highest value this year trading to an intraday high above $1565, and closing at $1560 per ounce. Immediately following gold futures reaching a new price high for the year it would close lower for four consecutive trading days, plunging below $1500 as it traded to an intraday low of $1492 on September 10^th.

After trading to the highest closing price this year, on September 4^th  gold closed at approximately $1558. For the following five trading days gold pricing would soften to the lows of approximately $1492, before moving back above $1500. Then on Saturday an attack by Iranian backed rebels devastated Saudi Arabia’s oil processing facility.