This morning, everything gold
is trading higher on the trading session. The popular SPDR Gold Shares
) are trading higher by 0.64 cents to $131.13 a share. Meanwhile, the Market Vectors Gold Miners ETF
) 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.