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Gold Prices Testing $1,350 Again

Commentaries & Views

As the Gold Churns is the soap opera we are watching today. With the Fed less than 24 hours away, gold traders and investors are trying to position themselves for the what the clueless will say. Traders and investors will once again be looking for clues of how the markets will react to this most-awaited meeting in years.

With gold once again pushing over the $1,350 level, which is the key resistance, will the Fed throw cold water on the gold party that has the metal targeting $1,400? Obviously trying to predict what an organization that has no common sense is going to do is the same as trying to figure out what the ending of a soap opera is going to be. Since soap operas go on forever with major plot twists and turns, there is no way to know what’s next.

However, we do know that the Street expects a rate cut in the next couple of meetings. The cut could be tomorrow but more likely in July, but either way, disappointment could send equities down and gold higher. All we can do is follow the footprint, which tells us gold is going higher, and we will remain long until the footprints change.

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