Gold fell steadily yesterday as nervous traders closed out long positions in advance of the FOMC meeting statement released later today.
Gold fell as low as 1361and closed near the lows of the day, though remains within the triangle consolidation. The lower boundary of the triangle is today at 1352 and the upper boundary is at 1402.
Whilst it is likely we will see some volatility immediately preceding and following the FOMC statement, it is unlikely to contain anything particularly new or "game changing" and as such, after the initial flurry of activity, we expect the down trend to resume and the triangle to break to the downside. The narrowing trading range and triangle formation suggests a large move is coming soon.
Oil is powering higher through key resistance at $98.25 and looks to be headed a lot higher, with $106 our target for this rally. This should help gold, trhoguh the correlation between oil and gold has recently been weak.
Equities are moving higher again after testing the breakout area around 1600 and we expect to see new highs shortly. This will continue to divert funds away from the yellow metal and put downward pressure on the price of gold.
Today's video for subscribers looks at the recent trading in more detail and our thoughts on the FOMC statement.
Gold fell as low as 1361and closed near the lows of the day, though remains within the triangle consolidation. The lower boundary of the triangle is today at 1352 and the upper boundary is at 1402.
Whilst it is likely we will see some volatility immediately preceding and following the FOMC statement, it is unlikely to contain anything particularly new or "game changing" and as such, after the initial flurry of activity, we expect the down trend to resume and the triangle to break to the downside. The narrowing trading range and triangle formation suggests a large move is coming soon.
Oil is powering higher through key resistance at $98.25 and looks to be headed a lot higher, with $106 our target for this rally. This should help gold, trhoguh the correlation between oil and gold has recently been weak.
Equities are moving higher again after testing the breakout area around 1600 and we expect to see new highs shortly. This will continue to divert funds away from the yellow metal and put downward pressure on the price of gold.
Today's video for subscribers looks at the recent trading in more detail and our thoughts on the FOMC statement.