Despite the horrendous negative economic growth in the first quarter in the United States, equities kept up their purring as if they were a 16-cylinder engine tuned to perfection.

When the dollar strengthens, there is little hope for gold to likewise do so.

Dollar strengthening means generally that the U.S. economy is strengthening. That bolsters the buck.

There was far too much good news in the U.S. today for gold.

There was too much renewed risk appetite in the equities markets.

There is a rumor China wants to run the gold markets.

Europe suddenly looks like a political basket case. Will the center hold?

Ukraine, despite the central government's robust attack on separatists, has not provoked Russian ire.

The week concludes very much as it began. Gold is trading sideways while the dollar strengthens and takes out what little air there is in the tires of the precious metals.

The S&P is hovering around its previous intraday highs of 1900. In fact, all major stock indices except for the FTSE were up in Asia, Europe and the U.S. NASDAQ is looking particularly strong.

After some solid fundamental news for gold bulls early in the day, momentum flagged as cautiousness took over.

The dollar's weakness has almost cut in half the "real" trading move today that remained.

Gold bulls are sniffing, looking, digging, listening with ear to the ground - everything short of consulting the tea leaves - to find some shred of news that will drive prices up.

Alas, today was not much different than yesterday.

Putin put his saber back in the scabbard. Or so he says. One way or another, as the elections in Ukraine approach, (May 25), the rhetoric has been turned to "keep warm." Cooler, business heads seem to be prevailing.

The U.S. economy seems to be standing alone on the sunny side of the street. Worries elsewhere are a drag on the whole world, and Europe, Japan and China can't expect the U.S. to carry the whole burden of interminably providing growth.

To say today was a risk-off day is a lavish understatement. It was a classic risk-off day, in fact.

Why classic?