Gold is trading under pressure today, currently trading off by $7.80 and fixed at $1,310. As of 4:51 PM Eastern standard time, gold prices have given up all of yesterday’s gains and closed at below yesterday’s open.

However, yesterday’s gains, as well as today’s selloff, have been a direct result of dollar strength and dollar weakness.

Last night, gold prices traded lower overseas. Moving to a two-week low Monday morning in European trading, gold dropped to $1,307.50. Concerns about the outcome of this month’s FOMC meeting, which begins tomorrow and concludes on Wednesday, was a significant contributing factor to the selloff.

Although the probability of a rate hike at the conclusion of this month’s FOMC meeting next week is extremely high, traders, analysts, and investors continue to have a wait-and-see attitude.

The countdown clock on the CME’s FedWatch tool currently reads: 4 days, 19 hours, 9 minutes and counting, as of 3:51 PM Eastern standard time today.

Over the last three consecutive weeks, gold has closed on Friday below the opening price on Monday. Even though there is still one more trading day this week, it seems probable that tomorrow’s closing price will be below Monday’s opening price.

Is this the quiet before the storm or the quiet before the quiet? Gold is trading in a narrow and defined trading range. Only eight dollars separates the intraday low and intraday high for today’s trading range. Currently gold futures, basis the most active April contract, is trading -$1.40 lower and fixed at $1,325.70.

Although not a fall from grace, the U.S. dollar lost further ground today in response to the departure of the U.S. Secretary of State Rex Tillerson, as well as the CPI data report. Now for the third consecutive day, the U.S. dollar has traded under pressure to close lower on the day, as well as containing a lower low and lower high than the previous session.

Selling pressure in gold, as well as a strong U.S. dollar, have canceled each other out to leave gold unchanged on the day. As of 3:30 PM Eastern standard time, April gold futures are currently unchanged and trading at $1,324 per ounce.

One of the more famous catchphrases from the 1960s sitcom ‘Get Smart’ was “Missed it by that much.” Holding up a thumb and forefinger to demonstrate an extremely small space, Maxwell Smart (Agent 86) would use this phrase to describe his failure.

Missed It by THAT Much

Saddle up and hold on to your 10-gallon hat. There is a new tariff in town, and he’s not afraid of a little trade war. As expected, this afternoon President Trump made good on his pledge to implement strong tariffs on both steel and aluminum.

The continuation of yesterday’s strong upside move in gold was short-lived with today’s price decline erasing much of Tuesday’s $17 gain.

Gold is trading under strong pressure today in reaction to the robust ADP jobs report and the release of the Federal Reserve’s Beige Book. As of 5:00 PM Eastern standard time, gold futures are currently down -$8.90 at $1326.30.