This Is What Gold's Move Means
Nicholas Santiago | Oct 28, 2013 12:17PM ET
Everything gold, today, is trading higher. The popular SPDR Gold Shares (GDX ) is trading higher by 0.39 cents to $26.71 a share.
What it Means
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 area. Traders should also watch the USD/JPY chart very closely as gold will usually trade inverse to that currency pair.
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