Gold

Gold prices surged again this week, trading to a weekly high of 1362 last night. This marks the third consecutive week in which gold prices have closed remarkably higher. It also continues the dynamic rally which began during the week of July 10^th.

What is the recipe that many investors are utilizing to shore up their financial portfolio? – Add $1 billion and stir briskly.

According to Bloomberg Markets, last week investors poured 1 billion into the largest exchange traded fund backed by bullion, the most since mid-2006.

This morning gold is trading under moderate pressure, currently down approximately six dollars at $1338.50. Today's report is an early edition in which we will focus completely on our strategy for our current to trade. We will look at two distinctly different models. The first model makes the assumption that recent downside pressure could be the beginning of a small correction.

It is no longer just a conflict of words and rhetoric, as verbal threats have now been followed with posturing actions which have taken this conflict to a whole new level.

Trading to a new record high this year, gold prices effectively breached the $1300 per ounce mark earlier this week and have not looked back. Today gold prices traded to an intraday high of $1334.50, effectively a new record yearly high. As of 2:30 EDT, gold is trading solidly higher up $7.70 at $1329.90.

Gold prices finished strongly higher, concluding the month with respectable gains on the day, month, and year. Reaching a new record high for the year, gold prices touched 1332. However, this new record high was to be short-lived as traders quickly pushed prices lower temporarily.

Although investors and traders are bidding up both gold and silver today, in the case of gold, the strong dollar is greater than the net positive gain attributed to buying. As of 3:15 EDT, spot gold is currently trading down -$1.40 on the day. However, on closer inspection, a strong U.S. dollar is devaluing an ounce of gold by -$7.60.

Geopolitical tensions mount following a provocative and dangerous move by North Korea which fired yet another missile this time over Japan. The last time North Korea acted in such a reckless way was 2009, when they fired a missile over Japan.

Gold prices began trading overseas yesterday with solid and modest gains, trading up a few dollars as it flirted with $1299-$1300. After trading to $1300 before backing off over the last two weeks, it seems the third time is the charm. As of 4 o’clock EDT, gold futures are trading sharply higher at $1317, a net gain of $19.10.