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 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 its 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.