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.