On yesterday’s opening letter we spoke about the fact that even though gold traded to its highest value this year, it’s still closed lower on the day. That along with other technical factors suggested that we could be close to, or on the precipice of some type of correction in gold pricing.

Although gold futures hit a new yearly high of $1788.60 in trading today, as of 4:48 PM EST gold futures are currently down by $5.40 and fixed at $1755.90. The lower pricing is occurring during a day of dollar weakness, with the U.S. dollar index currently down almost ½ % (-0.49%) and fixed at 98.85.

It is been another extremely volatile day for gold futures. Beginning from the opening Monday morning in Australia, roughly 22 hours ago, we have seen gold futures basis the most active June contract trade as low as $1724.20, which was a double-digit decline on the day. As of 4:20 PM gold futures are currently up $12.40, which is a net gain of .71%, and fixed at $1765.10.

This morning it was reported that over 6.6 million Americans have filed for unemployment last week, taking the total to over 17 million since the start of the COVID–19 pandemic. The Unemployment rate in the U.S. could be as high as 13%, this according to some economists, including former Fed chairwomen Janet Yellen.

After hitting the highest price gold futures have traded to in the last seven years, $1742 per ounce, profit taking has taken gold prices below $1700. In trading overseas yesterday for a brief instant gold broke the former ceiling of $1703, creating a new high, which will now become short-term resistance at $1742.

Today market participants witnessed a rare event with the U.S. equities rallying approximately 7% on the day based upon diminishing fears of the coronavirus, as the safe haven class rose between 3.6% (gold) and 5.39% (Silver) based upon the fact that the coronavirus is about to reach its apex in the United States this week.

The long-awaited U.S. labor department’s jobs report was released today indicating that employment in the United States declined by 701,000 individuals last month. Along with payrolls declining by over 700,000 which was 600,000 above the estimate provided by economists which predicted 100,000 jobs would be lost last month, the jobless rate rose to 4.4%.

Recent action in gold indicates that there is solid price support at the recent low of $1576. On a technical basis, there are two major studies identified that confirm this assumption and market model. The combination of these studies together indicates a high probability that gold prices will move higher over the next few weeks.

Within the extreme carnage in the U.S. equities markets, both gold futures and spot pricing remained in an upswing. Although any rise within both of those precious metals were tepid at best and also affected by a stronger U.S. dollar that gained value since hitting it’s low on Friday. After the U.S.