This weekend the leaders of the G20 will meet in Argentina. The importance of this conference lies within the side meetings between the leaders of the United States and China. The question on traders’ minds is whether or not Xi and Trump can move closer to some sort of resolution to the trade dispute which has now morphed into an out and out trade war.

It’s back to the basics, with the Dow Jones industrial average closing higher for the first time in the last five trading days. Gold futures are currently trading fractionally lower. As of 4:45 PM Eastern Standard Time, the most active Comex contract (December) is currently $0.50 lower at $1,222.70.

Gold prices are holding steady above the 50-day and 100-day moving averages as well as critical support sitting at $1218. This support level is based upon the .618% Fibonacci retracement level from a large data beginning in December 2016 when gold prices bottomed at $1124 per oz., up to the multi-year high that occurred $1369 per oz. 

This morning, the U.S. dollar traded slightly lower to a critical support level at 95.90 before recovering, gathering steam, and moving to much higher ground. As of 5:00 PM Eastern standard time, the dollar index is currently up almost 7/10% (+ 0.639 points) and fixed at 96.705.

Once again, the U.S Dollar index is the main driving force taking precious metals to higher pricing. Today’s $2.70 upside tick in gold was almost entirely due to the declining U.S dollar which has been the story for the past four days.

To my valued and esteemed subscribers,

The US dollar index surges past 97.40 to a 17-month high amidst the backdrop of political uncertainty in the UK and Italy. The US Dollar index is currently pegged at 97.405 after three consecutive strong sessions bring the index to levels it has not seen in over 16 months.

U.S. stocks tumbled in trading this afternoon with selling pressure a result of multiple factors.

After producing respectable gains throughout the week, U.S. equities reacted to two major events, as well. First, market participants reacted to the statement released by the Federal Reserve yesterday from this month’s FOMC meeting.

This afternoon the Federal Reserve concluded this month’s Federal Open Market Committee (FOMC) meeting. Immediately following the conclusion of today’s meeting, the Fed released a statement. There was no press conference held after the meeting.

Investors and market participants seem unfazed while bidding the U.S. equities up substantially following the midterm elections which resulted in the Democratic Party now controlling the House of Representatives. Although the Senate remains firmly in control by the Republicans, yesterday’s election gave Democrats the needed majority to control the House of Representatives.