FOMC Meeting

The trade is focusing on the FOMC meeting Tuesday and Wednesday, which suggests that the market should continue to chop around until the meetings end on Wednesday. Some analysts have suggested that the Fed has come to the realization that it needs to be vague about its exit plans for QE because once the market senses the move is imminent, it will price it immediately, as opposed to getting the gradual adjustment that the Fed desires. If that is the case, that we might expect the Fed to back off from the tapering idea and gold to make a positive move out of the meetings, especially given what is arguably an oversold COT position.

Either way the control boyz will do what they want with price as they all gang up at once and clear the stops and then decide on direction.

When we look at everything, cycles, COT, price patterns, seasonal trends, our own view is we favor a rally in the metals beginning in the June 23 area, plus or minus 72 hours. There’s a myraid of cycles coming forth and so the bottom line is if we do get a spike low from the FOMC meeting, we think it would be a buy opportunity. However, the next 30 days could prove to be a continued choppy/trendless affair as we enter the summer doldrums. The chart below shows the average performance and it favors the current choppy period to last into early July.

Gold chart

Gold remains choppy and overlapping with resistance in the 1390-1394 area today and 1404. Support is the 1355-1362 area at the purple and yellow lines below price and minor support in the 1372-1375 area. With the FOMC meeting gold will probably not drift far on the upside until then. All the talk of tapering is most likely B.S. and odds favor the control boyz try to spike a low from which gold favors a short term rally from.

 

YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS 
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED. 

 Do your own due diligence. 

No one knows tomorrow's price or circumstance. 
 I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader. 
I do not accept responsibility for being incorrect in my speculations on market trend. 

 King Regards