Gold

Gold futures are trading fractionally higher today, with the most active June 2018 Comex contract currently fixed at $1,348.60, a net gain of $0.70 on the day. Spot gold is currently trading up $0.20 on the day and fixed at $1345.60.

Gold futures (June 2018 Comex contract) gained $6.70 today and is currently trading at $1,348.60 per ounce. Gold closed higher on four of the five trading days this week, resulting in an $11 gain. This marks the second consecutive week of higher pricing for gold.

The events and market sentiment which moved gold higher yesterday shifted today resulting in sharply lower gold prices. Gold prices surged to a 21-month high following a tweet made by President Trump implying an immediate missile response to the chemical weapons attack in Syria.

With the U.S. financial markets closing for the day, we can see the outcome of numerous markets reacting to several different events. Gold futures are currently trending higher, although they are off of the highs achieved this morning at $1,369.40.

For the third consecutive day, gold has gained value again. At the same time, the U.S. dollar has had three straight days of consistently lower pricing. The recent gains in gold, as well as the declines in the dollar, have run in tandem with the current risk-on environment that favors U.S. equities over other asset classes, such as fixed income and safe-haven.

This weekend Trump and his administration sought to temper fears of an all-out trade war between two superpowers.

In his latest action, President Trump fired his next shot today by ordering a review of additional tariffs. This action prompted an immediate and strong response from China.

Today’s decline is the result of a couple of factors, including a stronger dollar and the perception that tension has eased in regards to the trade dispute between the United States and China.

It’s not about nuance, it’s not about the subtleties of trading, rather it’s about a 24-hour market in which traders witness polar opposites in terms of market direction and sentiment.

Market participants witnessed or were part of a 180° reversal of market sentiment this morning with equities moving substantially higher, and safe-haven assets such as gold trading lower.