Gold continues to exhibit all of the underlying features one looks for in a market which is deeply embedded in a rally to higher pricing. This market scenario in which gold pricing has been gaining value can be seen in both long and short-term studies.

The financial markets have been on a wild roller coaster ride over the last 48 hours. Yesterday the Fed announced it has cut its Fed funds rate by ¼%. This put strong and dramatic pressure on gold prices as the most active December futures contract fell to a low of $1412.10. This also sent U.S. equities lower yesterday as the Dow traded down 466 points at the low before recovering slightly.

In a fast market, traders reacted to the news that the Federal Reserve has lowered interest rates by ¼%. Immediately following the announcement of the ¼% rate cut gold prices sold off briskly and within the first 10 minutes of trading traded down by approximately $10. This is the first time the Federal Reserve has cut interest rates since 2008.

Gold continued its ascent, and now for the second day in a row has closed moderately higher on the day in anticipation of tomorrow’s Federal Reserve announcement regarding an interest rate cut. As market participants continue to speculate and attempt to factor in the Fed’s decision tomorrow, their actions continue to be very bullish for gold.

There is a trifecta of events this week that will have an impact on gold pricing. These events will occur throughout the entire week beginning Tuesday in China and concluding on Friday.

As of 4:04 PM EDT the countdown to the FOMC meeting is four days, 21 hours, 56 minutes and 24 seconds away, this according to the countdown clock on the CME’s FedWatch tool. This tool is also predicting that there is an 80.6% probability that the Fed will announce and implement ¼% rate cut, and a 19.4% probability that they will cut their Interbank Fed funds rates by ½%.

When it comes to statements made today by the ECB President, Mario Draghi, the devil is in the detail, or in today’s case the lack of details. Comments made by the ECB President today put bearish pressure on both U.S. equities as well as the precious metals markets, with investors in each asset class focusing on different components of his statement.

The Standard & Poor’s 500 closed at an all-time record high today. After factoring in today’s gains of 14.09 points the index is now fixed at 3019.56. The NASDAQ composite also closed at a new all-time record high. After factoring in today’s gains of 70.10 points, the NASDAQ composite is currently fixed at 8321.50.

Gold futures have been trading lower ever since prices reached an apex last week when on Friday, July 12 the most active August contract traded to a high of $1454.40. Even during the trading session on Friday gold closed well off of that high and close at approximately $1428 per ounce.

Although gold futures have exhibited solid gains over the last two months today traders and market participants kept the precious yellow metal in a narrow and defined trading range. Gold futures basis most active August contract traded to a high today of $1430.80, and a low of $1423, resulting in a tepid eight dollars trading range.