Just when you think the waters surrounding the Korean Peninsula are safe, Kim Jong Un’s regime once again ramps up the rhetoric by issuing new threats, this time focusing on Japan in addition to the United States.

The global equities rally moved into the United States this morning. Trading today resulted in record closes in the Dow, NASDAQ and Standard & Poor’s 500. The U.S. dollar also found underlying strength, gaining 6/10 of a percent on the day to settle at 92.43.

Consider this: Since July 10th of this year, gold prices have moved from $1200 per ounce to last week’s high of $1363, a new record for the year. In other words, in roughly ten weeks, gold prices have seen an increase of value of $160, which translates to an 8 ½% gain. Given that kind of steep price ascent, one would expect a cycle of peaks and troughs, stair steps to higher pricing.

In what can best be described as a relief rally in U.S. equities, recent events have shifted investor sentiment strongly towards a risk-on environment today. Deep concerns about Irma subsided as the hurricane did less damage than originally forecast. Investors were also relieved that North Korea did not launch another missile during its national holiday, Founder’s Day.

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.