Gold dropped to retest 1600 at the COMEX open yesterday, before rebounding to rally steadily for the rest of the day, finishing the session at around 1613.
These gains have been largely held overnight, with the current price around 1611. All eyes are now fixed on the FOMC statement that will be released at 6pm UK time, following the 2 day Fed meeting.
Investors will be looking for clues indicating the future of Quantitative Easing and other stimulus measures and the release of the statement could have a major impact on the gold price, though history tells us that any "knee jerk" move tends to be short lived. We expect subdued trading today as participants await this key announcement.
The next target for the bulls is 1620, a move above this level will confirm that a bottom is in, leading to shorts covering and new longs entering the market, potentially igniting a strong upwards move.
Today's video for subscribers looks at yesterday's trading in more detail and potential resistance levels above.
These gains have been largely held overnight, with the current price around 1611. All eyes are now fixed on the FOMC statement that will be released at 6pm UK time, following the 2 day Fed meeting.
Investors will be looking for clues indicating the future of Quantitative Easing and other stimulus measures and the release of the statement could have a major impact on the gold price, though history tells us that any "knee jerk" move tends to be short lived. We expect subdued trading today as participants await this key announcement.
The next target for the bulls is 1620, a move above this level will confirm that a bottom is in, leading to shorts covering and new longs entering the market, potentially igniting a strong upwards move.
Today's video for subscribers looks at yesterday's trading in more detail and potential resistance levels above.