Recent events have resulted in a de-escalation of the current tension between the United States and North Korea. Also lowered is the probability of North Korea aggressively continuing its nuclear testing program.

Chinese pressure has, in fact, dampened the current tension as they issued a proclamation to implement sanctions created by the United Nations.

After last week’s dynamic upside surge of roughly $40 from the low of the week, today’s moderate selloff does not change our overall view and bullish demeanor in gold. Gold today traded to a low of 1284, and as of 4 o’clock EDT is trading at 1287, down seven dollars on the day, a loss of just over a half a percent.

Strong statements coming from both sides suggesting massive levels of destruction continue in the war of words, escalating the current tensions between the United States and North Korea. Whether penned by the President of the United States or the dictator (and his cronies) of North Korea, it seems each statement made by one leads to a harsher and more foreboding message from the other side.

Charles Dickens expressed it well in his novel, A Tale of Two Cities. He describes a period of time that contained both positive and negative experiences. The dichotomy of the human condition in which there is good and evil, prosperity and poverty.

Although it is not a common occurrence, there are many historical instances where nations with opposing ideologies began a war of words and then went on to rattle their swords. What is unusual in this case is that it is the President of the United States rattling his sword.

“Fire, Fury and Power” was President Trumps rebuttal to recent threats by North Korea in which they threatened to launch a nuclear attack on the United States. It seems we have now entered a very dangerous war of words.

Market participants and analysts have had the weekend to digest Friday’s job report and gauge what effect this data will have on the monetary policy of the Federal Reserve. Today we gained more insight as St. Louis Federal Reserve’s President James Bullard spoke in Nashville to the America’s Cotton Marketing Cooperative Conference.

Today’s jobs report released by the Labor Department indicated that U.S. employers added 209,000 jobs in July, well above analysts’ estimates. Add to that a 16 year low in the unemployment rate (4.3%), and you have the necessary components to bid up the U.S. dollar, which has been under dramatic pressure throughout this year, resulting in a 15-month low.

The most recent rally in gold has paused as traders pull profits and seem reluctant to initiate large stakes ahead of tomorrow’s jobs report. As of 4 o’clock EDT, gold futures are trading off by about $3.60, currently fixed at $1271.50. At the same time, spot gold is trading fractionally higher, trading up approximately $2.30 at $1268.50.

Like pulling the petals off a daisy, market participants and analysts have been oscillating back-and-forth, almost day by day, as to whether Janet Yellen, at the helm of the Federal Reserve, will initiate a last interest rate hike in 2017.