Gold

As they say in Italian, “Arrivederci Euro, Forte Dollaro US,” or “goodbye Euro value, the U.S. dollar is strong.” Political unrest in Italy has put tremendous pressure on the euro zone, with the euro-dollar selling off dramatically today against the U.S. dollar.

As far as gold pricing is concerned, it would be fair to say that during the last eight trading days, price movement in gold indicated a week of price consolidation followed by a reversal.

It’s a no go for the United States- North Korea summit, or is it?

This morning’s release of the minutes from last month’s FOMC meeting provided some upside momentum to move gold off this morning’s lows. After trading to a high of $1,298 in overseas trading last night, traders bid prices lower in morning trading taking gold to $1,287 per ounce.

Ever since gold broke below $1,300, exactly a week ago today, pricing has remained in an extremely narrow and defined trading range. The relationship between the daily open and closing price has diminished to just a couple of dollars each day.

Gold closed fractionally higher after trading to the lowest price this year. Trading $10 lower and under pressure today, gold reached an intraday low of $1,281.20. The last time gold traded to $1,281 was December 22 of last year. The key distinction was that, during December 2017, gold had begun a dynamic rally after hitting a low at $1,238.

Gold has been attempting to form a baseline level of support over the last three trading days and finished fractionally higher in trading today. Gold Comex futures finished up approximately $2.50 today and closed at $1,291.90 (most active June contract).

For the first time this year, gold has broken below the key psychological level of $1,300 per ounce. This year began already deeply entrenched in a dynamic rally which took gold pricing from $1,238 per ounce to $1,365 by the end of January.

Gold is trading sharply lower, with gold futures currently down $26.30, making for a 2% decline. Most active June Comex gold is presently fixed at $1,292 per ounce after breaking below critical support at $1,300 earlier today.