As of 4:00 PM EDT U.S. equities surged today with the Dow Jones industrial average up over 500 points, a 2.06% gain. The NASDAQ composite had a stellar performance today up 2.38%, which was the largest percentage gain when compared to the S&P 500 and the Dow. Gold also closed up slightly on the day gaining approximately three dollars, with August futures currently fixed at $1330.80.

Gold prices have skyrocketed to the second highest level this year. As of 4 PM EDT gold futures basis the most active August contract is currently fixed at $1332.30, after factoring in today’s gains of $21.20. Gold is now within striking distance of surpassing the current high of 2019 at approximately $1350 per ounce.

Taking markets by surprise today, Donald Trump announced that he will be imposing new tariffs on goods imported from Mexico. This in addition to his earlier actions in which he raised tariffs; on certain items that the United States imports out of China from 10% to 25%.

“Ambition drives you on, Ability certainly helps, but the fickle finger of fate and luck are great things” *
 Fergus Henderson

For the first time since May, 2018 the dollar index has traded and closed above 98. However, during the last occurrence, the U.S. dollar had been in a free fall which began in December 2016, when the index peaked at 103.72, and 98.00 was just another brick in the wall of U.S. treasury supremacy. This major correction would result in the dollar losing over 15.5% of its value.

Gold traders returning from an extended three-day holiday weekend were met with strong selling pressure and lower pricing in gold, silver and platinum. As of 2:00 PM EDT gold futures, basis the most June 2019 contract is currently trading down by $5.90, and fixed at $1277.70.

Gold’s respectable gains on Thursday took a week that was headed for a lower close, to closing fractionally higher for the week. Gold traded to a low of $1269, which is two dollars above the double bottom which occurred in April. It also traded to a high at exactly $1287 which is a Fibonacci retracement of .38%.

Not even the Federal Reserve minutes from last month’s meeting seem to have any kind of dramatic affect either bullish or bearish as it relates to current gold pricing.

Since the middle of February immediately following this year’s high at $1350, we have seen a series of lower highs, and lower lows. This trend would continue until we had a double bottom on April 24^th  and May 2^nd at approximately $1267. From the second bottom on May 2^nd the market began a short-lived rally taking gold prices just above $1300 per ounce.