Gold currently sits in an ever narrowing wedge pattern as markets await for signs of the strength of the worlds largest economy. As talk of an impending recession continue and US data continue to unimpress, the consensus is widely in favour of a Federal Reserve rate cut later today. Should we see that, we expect gold to break to the upside to at least 1518 in the short term. On the other hand if markets are shocked and there is no change, downside movement could be significantly greater. Either way post 7pm we expect the pattern to be broken and volatility to surge.