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.

Renewed concerns about a potential trade war as a direct result of proposed tariffs on steel and aluminum has resulted in both a lower U.S. dollar as well as buyers accumulating gold. Gold futures are currently trading up $15.50 at $1335.40.

Selling pressure continues to move gold lower, with a stronger U.S. dollar adding slightly to the mix today. As of 4:00 PM Eastern standard time, spot gold is trading $3.80 lower on the day and currently priced at $318.80 per ounce. Of today’s moderate decline, the vast majority is a direct result of traders bidding down the precious yellow metal.

This has been yet another week in which events transpired that profoundly influenced the financial landscape. It seems as though volatility and uncertainty have become intrinsic outcomes of statements recently made by those that run our country.

Gold futures started off the day trading under enormous pressure overseas, which continued during the morning trading session in New York. These depressed prices were in tandem with falling stock prices here in the United States.

Yesterday’s testimony by Jerome Powell, the recently appointed chairman of the Federal Reserve, significantly underlined the fact that we are now deeply immersed in a period of quantitative normalization.

In his first testimony to the Congress, Jerome Powell, the newly appointed chairman of the Federal Reserve, said that the economy was in fact normalizing. As such, he made it clear that in next month’s FOMC meeting each member will reevaluate the current monetary policy as it reflects upon the number of interest rate hikes this year.

Although trading well off of highs achieved earlier in the trading session, gold is moderately higher as traders await Jerome Powell’s first testimony to the House and Senate committees this week.

Today the Federal Reserve released its “Monetary Policy Report” to members of the Senate and House of Representatives. The summary indicated that the economy and the labor market continue to grow, while inflation remains below their long-term objective of 2%.