Now in its second week, a remarkable rally in gold and silver pricing continues. This rally began with bargain-hunting and short covering; however, this recent leg is predominantly based upon a weakening U.S. dollar.

Although gains have been modest, both gold and silver have closed higher for the last four consecutive trading days. As of 3:30 Eastern Standard Time, gold is currently trading up $3.10 (0.24%), based on the June 2017 futures contract, at $1230.70.

In recent weeks, gold and silver pricing moved dramatically higher due to many factors combining to paint the global geopolitical environment as uncertain. Actions in North Korea, as well as Syria, became a primary focus of world leaders as these activities provided the real potential for further escalation and increased turmoil.

For the second day in a row, gold prices have closed higher on the day. Is it time to look for a potential bottom? More importantly, are gold prices in oversold territory? While it might be a little early to have a definitive answer as to whether gold prices have bottomed, we see the necessary technical indicators that would be present at a price point which is found in technical support.

“There's something happening here. What it is ain't exactly clear” - Steven Stills

Now for the third consecutive week, gold and silver prices continue to trade dramatically lower. As of 3 o’clock Eastern Standard Time, gold futures are trading at $1216.50, which is a net loss of $10.60 (-0.86%) on the day. Silver futures are also trading lower, currently at $16.10, down almost $0.16 (-0.97%).

Five steps forward and three steps back. This represents how the most recent activity looks on a weekly gold chart. Beginning the week of March 13^th, for five consecutive weeks, gold prices closed higher on the week. This upside action moved gold prices from below $1200 to just below $1300.

Despite attempting to find a foothold and some price stability today, gold still suffered a major price decline this week. Gold futures are currently trading at 1229.30, marking a net change of approximately $0.60. Of course, any upside move would be dwarfed in comparison to the drawdown, which resulted in a $40 loss of value this week.

The current selling pressure in gold and silver continues and accelerates, even with a dynamically weaker U.S. dollar. The U.S. dollar is once again trading under pressure, making this the fourth day in a row. As of 3:30 Eastern Standard Time, the U.S. dollar index is off almost half of a percent, currently fixed at 98.61.

The first of two key events affecting financial markets this week, this month’s Federal Open Market Committee (FOMC) meeting, has just concluded. On Friday, the Department of Labor will release its jobs report, containing data about new jobs added in April. Based on a survey by Reuters, economists expect the April count to include 175,000 added jobs.