Gold

Gold futures sold off dramatically this morning, trading to an intraday low of $1263.30. This low matches two other occurrences in which the market traded to a low of about $1260 per ounce. Gold prices drifted to $1262 on October 6th as well as October 27th.

In a 51-49 vote, the U.S. Senate passed a tax reform bill early on Saturday morning after a full day of negotiation. Congressional negotiators worked feverishly while making changes to the bill up until a few hours preceding the beginning of the final vote, which occurred at approximately 2 o’clock in the morning.

Gold prices staged a dynamic rally, rife with extreme volatility, as news emerged revealing that former national security adviser Michael Flynn has pled guilty to lying to federal agents. Much more concerning is the fact that he will be providing help with the current investigation regarding the administration and Russian collusion.

Although the recent action regarding gold would make it seem as though prices must have certainly declined during the month of November, this is not the case. Given that the price change from the beginning of the month to the last trading day of the month is narrow and defined, gold is headed toward its first monthly gain since August.

In Spanish Nomas simply means ‘no more.' This seems as if it relates to NoKo (North Korea), which means no more reaction or action from the United States administration, at least not yet.

The potential for real tax cuts in the United States for both corporations and individuals, along with the fact that today North Korea fired a ballistic missile towards Japan in their latest act of aggression, had little effect on current gold pricing.

Gold prices opened above its 50-day moving average for the first time in more than a month. The primary distinction between then and now is the fact that on October 16 gold prices opened above its 50-day moving average and closed lower on the day, but still above that critical technical average. That created a long candle that can be identified is a hangman.

As promised, the minutes from last month’s FOMC meeting were released just after gold futures closed for the Thanksgiving holiday. Trading moderately higher throughout the evening in overseas trading, gold moved up sharply to trade to new highs on the day, just prior to the end of the trading day.

Gold is trading modestly higher this morning. As of 3 o’clock EST, gold futures are currently fixed at $1280.80 per ounce for a net gain of $5.50 (+0.42%). After yesterday’s dynamic drop, gold prices have partially recovered. However, they remain trapped within a narrow and defined range.

It seems as though the week of Thanksgiving can also be called “Shark Week” in regard to gold traders. This is not the first Thanksgiving week in which we have seen a dynamic move in gold pricing that does not pass the smell test.