The most that can be said for today's trading in gold is that it reacted proportionately to the news on July retail sales in the U.S. Not too strong, not too weak. Just right.

After touching 1318 earlier in the day, gold has settled back in afternoon trading to only a modest gain. Curtailing some of gold's head of steam was a stronger dollar.

The tensions in Ukraine, and to a lesser extent in Iraq, are keeping gold prices stronger than they might otherwise be in the calm, windless seas of late summer.

Gold felt and acted directionless today as deep summer calm fell upon the market.

Indeed, while gold is down a small bit in afternoon trading, its loss is completely attributable to dollar strength.

There was little to support gold as a haven play. World hot spots seemed to simmer down.

My fellow traders

Respectable follow-through buying due to short covering and a newfound enthusiasm for haven plays buoyed gold today. Gold is off its early highs for the day, however. Silver was not as lucky. It is off by more than 0.5%.

How quickly sentiment changes!

Early in the day, U.S. economic data drove stocks higher and gold lower. At 5 o'clock EDT, gold is now slightly better than even on the day.

If you're inclined to be a nervous investor in gold and silver, this is a perfect time for you to get your ya-ya's out. There are apparently many among precious metals traders who are still betting on a sooner-than-anticipated rise in interest rates from the Fed.

It's always amusing to watch a fundamentals overreaction corrected by an equal and opposite overreaction. It leaves you wondering where the truth is in trading impulses.

Our thought is that traders do not understand the synergy between "jobs created," "the unemployment rate," and "potential Federal reserve actions."