Last week gold prices reached their highest value of 2019. Prior to that the record high this year was at approximately $1331, and was achieved on January 30. Gold pricing began the year trapped in a tight and narrow range between the highs at $1300 and the lows of $1275.

The questions market participants who follow and trade gold should be asking after yesterday’s dynamic selloff is whether or not this price decline was the beginning of a correction? A small dip to be followed by consolidation? Or a one and Done?

Simply put it is a rare instance when a market goes parabolic, or trades in an extended extremely long-term rally or correction without having peaks and valleys. In fact, most rallies are composed of periods of price growth followed by periods of corrections. What defines an upside rally is that the upside moves are always greater than the subsequent corrections.

Although the optimism which is been so prevalent taking the precious metals markets higher is still fully intact, the minutes from last month's FOMC meeting I had a small bearish undertone to gold pricing today. Nonetheless I remain bullish and think that we could easily still see the market take a stab at $1370 per ounce the triple top that traders have not been able to break through over

For those investors and traders who intrinsically believe that gold pricing should be higher than current pricing, a revival of optimism has emerged as market sentiment shifts to a much more bullish demeanor.

Although Presidents’ Day has shortened the hours of trading, it has not dampened the bullish market sentiment. Trading in the Comex exchange was closed, however the Globex remained open on an adjusted time schedule.

For the first time in a while gold is sharply higher and gains are not based upon a weaker US dollar. Over the last couple of months, the majority of trading days contained a net change in gold that was the direct result of dollar strength or dollar weakness.

As of 5:30 PM Eastern standard time, gold futures basis the most active April contract is trading $.70 higher and currently fixed at $1315.30. Although gold futures are exhibiting extremely fractional gains on the day, there is over a $10 differential from the lows achieved last night.

Any hopes that the U.S. dollar would continue to trade lower after yesterday’s weakness was short-lived. In fact, all of yesterday’s price decline eroded in early evening trading as the dollar not only recouped but closed above yesterday’s opening price.

On January 31^st, 2019 gold hit its highest value this year when on an intraday basis gold future traded to a high of $1330 per ounce. From there pricing began an extremely shallow retracement trading as low as $1306 on February 7^th.