Gold is trading modestly higher this morning. As of 3 o’clock EST, gold futures are currently fixed at $1280.80 per ounce for a net gain of $5.50 (+0.42%). After yesterday’s dynamic drop, gold prices have partially recovered. However, they remain trapped within a narrow and defined range.

It seems as though the week of Thanksgiving can also be called “Shark Week” in regard to gold traders. This is not the first Thanksgiving week in which we have seen a dynamic move in gold pricing that does not pass the smell test.

In brisk trading today, gold prices surged and closed strongly higher. The most active December futures settled up approximately $17 on the day, and as of 3:30 EST is currently fixed at $1295.40, which is a net gain of $17.10 (+1.35%).

Okay, so we are still a good month and a half away from Christmas, and especially in Hawaii, there is no snow on the ground. However, there are some distinct parallels to recent year-end activity when it comes to gold pricing.

U.S Equities have softened for four of the last five trading days. Since Donald Trump was elected president in November of last year, U.S. equity indexes such as the Dow Jones, S&P 500, and the NASDAQ composite have traded to new all-time record highs on 58 separate occasions.

Losing almost 7/10 of a percent today, the U.S. dollar was instrumental in raising gold prices, even compensating for the modest amount of selling of gold. As of 3:30 PM Eastern standard time, the U.S. dollar index is currently trading down 64 points at 93.745.

On Friday of last week at approximately 11:10 EDT, in a span of about 10 minutes, a single order of four million ounces of Comex gold rattled the market and resulted in a drop of approximately $10.

According to CNBC, “It was not immediately clear what caused the drop.”

This morning, in the span of 15 minutes, gold prices plunged from roughly $1284 an ounce to $1274. This sizable and quickly paced price drop occurred without any real shift in market sentiment or any new relevant fundamental event that could precipitate that occurrence.

Since October 26th, when gold prices traded to $1262 for the second time to form a double bottom, gold prices have maintained and traded in a defined and narrow trading range. The first occurrence of this double bottom was the result of a strong correction which took gold pricing from $1362 to $1262 on October 5th.

For the second time this week, gold has traded and closed above a current level of resistance residing at roughly $1280 per ounce. This follows the last two weeks of market activity in which gold pricing has been stuck in a defined narrow range between $1262 (support) and $1280 (resistance).