Today we witnessed a virtual meltdown in the US equities markets with the Dow Jones industrial average currently trading off about 300 points plus on the day. At the same time we are witnessing the US dollar under pressure.

When the dollar grows this strong, it's almost impossible to resist. As the trading day winds down, the dollar has pulled gold down over $9.00. The dollar is up against the euro by about 0.70%, unusual in some respects because it's clear that the Fed is going to keep rates where they are for some time to come, and certainly the Europeans can't lower interest rates unless they go negative.

The pattern we've seen fundamentally in the current rally is continuing today.

U.S. equities decline and the dollar drops. Although, there is evidence forming that what we are seeing in the stock markets is a dip and not a full-blown "correction." Nevertheless, it has been good for gold bulls, the side of trading we are in on at the moment.

Until Europe acts, as German President Angela Merkel has indicated her country will finally do, the world will be in stasis economically. Europe and the U.S. are inextricably bound together financially, economically, culturally and historically. The resistance to Keynesian market stimulation by Europe is grating on the rest of the world's nerves.

U.S. equities certainly sent their invitation to gold today to act like a high-quality haven investment, but the trading gods went against us late in the day and, after 1232+, we've settled back down for a modest $2.40 rise.

Somewhat counterintuitively, both equities and gold rose sharply today after the FOMC release of its September meeting's minutes.

However, gold should be viewed slightly differently in its rise versus the rise in equities.

First, though, the minutes were dovish beyond predictions.

Aside from some particular individual movers on the equities indices, the reason the markets are tumbling is because Europe is the first world's economic sick man right now.

As we warned on Friday, short covering and bargain hunters stepped in today and bid gold up. This is fairly predictable.

Leaving behind a period of indecision, markets went off in their own special ways like a string of firecrackers after the U.S. Labor Department reported the U.S. economy created 240,000 jobs in September with the August numbers being revised upward, as well.

But all the clocks in the city Began to whirr and chime: 'O let not Time deceive you, You cannot conquer Time.

Tomorrow the Labor Department will issue its monthly employment report with September's numbers. If ADP's private assessment is any indication, the U.S. will be adding around 190,000 to 220,000 jobs. Additionally, first-time unemployment claims plunged to a fourteen-year low. (However, that just about makes up for the unexpected rise in the previous week.)