The pressure metal is within the lower depths of its mid-term value as it hovers over support. Tomorrow’s U.S Fed monetary policy outlook will impact Gold.
Perilous Few Weeks of Trading for Gold
Gold has suffered a rather perilous few weeks of trading. This morning the precious metal is near 1314.00 U.S Dollars an ounce as it tries to fight off lows.
Gold did rise in value slightly yesterday, but it has been unable to sustain momentum upwards since late January. Interestingly, as the broad markets have grown more fragile the precious metal has not gained, which flies in the face of traditional risk adverse trading philosophy.
Interest Rate Hike Already Factored into Gold
Important support looks to be around 1303.00 for Gold, while resistance near term may be the 1324.00 level. However, traders should expect volatility to develop in the coming twenty-four hours as the U.S Federal Reserve’s monetary policy statement is put forth.
Investors expect the Fed to raise its interest rate by a quarter of a point tomorrow, and this has largely been digested into the broad markets. Meaning traders with a taste for speculation and deep pockets may see opportunities for Gold to rise in value.
In the short term, we believe the Gold be positive. The mid-term and Long term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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