Gold Moves Higher Ahead of the FOMC

This morning, everything gold is trading higher on the trading session. The popular SPDR Gold Shares (NYSEARCA:GLD) are trading higher by 0.64 cents to $131.13 a share. Meanwhile, the Market Vectors Gold Miners ETF (NYSEARCA:GDX) is trading higher by 0.39 cents to $26.71 a share. These moves in gold and the gold mining stocks are taking place ahead of the a highly anticipated Federal Open Market Committee (FOMC) meeting which starts tomorrow. The central bank is holding a two day meeting which will conclude on Wednesday afternoon. The move in gold is telling us that the Federal Reserve will likely leave it’s current $85 billion a month quantitative easing program unchanged. Since April 2013 the Federal Reserve has hinted about a cut in the easy money program, but has never once cut the program.

Day traders should watch for intra-day resistance on the GLD around the $131.75 level. The GDX should have some intra-day resistance around the $27.00 area. Traders should also watch the USD/JPY chart very closely as gold will usually trade inverse to that currency pair.

About Nicholas Santiago 575 Articles


Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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