Gold

Although gold prices closed lower on the week, prices recovered with a gain of 6 dollars. Reacting to today’s US jobs report, as well as gauging market sentiment from members of the Federal Reserve to determine whether or not a December rate hike is still in play, traders were able to move the market into solid positive territory by the close.

According to the Federal Reserve, the process is called quantitative normalization. This is a process by which the Fed reverses the actions and the net effect of the actions taken during the protracted period of quantitative easing.

Gold futures have moved up modestly today and are currently trading at $1277.90, a net gain of $3.30 based on the most active December 2017 contract. Today’s gain comes based on a combination of three-parts dollar weakness, and two-parts traders bidding up the precious yellow metal.

A risk-on environment as well as a high probability that the Federal Reserve will implement one last interest rate hike this year have weighed heavily on the price of gold. As such, both of these factors appear to still be in play, with U.S. equities once again gaining value and closing at a new all-time record high.

The first day of the last quarter of 2017 began with the dollar surging to higher ground. As of 4 o’clock EDT, the dollar index is trading up 59 points (+0.64) at 93.475. Obviously, commodities traded or paired against the dollar had a reciprocal downside move.

Gold continues to trade under pressure, closing lower on the day and lower on the week. Losing roughly $18 on the week, gold futures broke below $1300 per ounce to settle near $1283. This marks the third consecutive week in which gold prices have closed lower.

Given that gold prices have declined over $80 since reaching $1363 on September 7th, one might think that we have been under the sentiment of a bear market in gold and that prices will most likely continue to decline.

A combination of factors have resulted in dramatically lower pricing in both gold and silver today. As of 4 o’clock EDT, gold futures are trading off by $15.50, with the most active Decembers contract currently fixed at $1286.20. Spot gold is also trading sharply lower this morning, currently off by $10.60.

Over the last two days, we have seen gold prices oscillate dramatically, gaining 1.2% yesterday, only to see prices decline by almost a full percentage point today.

The war of words between the United States and North Korea has now accelerated to a new and more dangerous level of concern. Recent statements and threats made on the part of North Korea have escalated the current tension and hostility between our two countries.