Gold Reverses as Fed Stimulus Questioned (GLD) (IAU)
Tweet Send to a Friend
Last week, spot gold and SPDR Gold Trust ETF (NYSE: GLD) climbed from below $1600/oz to a high of $1629, where strong resistance was met at the top end of its trading range. A better-than-expected GDP number on Friday gave bears enough ammo to hold the line on $1630.
Wednesday’s rate decision by the Fed is the critical event for gold this week. Some investors are anticipating Fed action, although the exact extent and timing of that action are unknown.
Monday morning's downturn in gold could mean traders are paring expectations going into Wednesday’s Fed meeting, particularly in the light of Friday’s slightly stronger GDP reading. While the economy is obviously weak, Fed watchers are pushing back on expectations and the opinion is now split on Wednesday’s rate decision. As a result, traders say they are not surprised by Monday’s modest selloff.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Wednesday’s rate decision by the Fed is the critical event for gold this week. Some investors are anticipating Fed action, although the exact extent and timing of that action are unknown.
Monday morning's downturn in gold could mean traders are paring expectations going into Wednesday’s Fed meeting, particularly in the light of Friday’s slightly stronger GDP reading. While the economy is obviously weak, Fed watchers are pushing back on expectations and the opinion is now split on Wednesday’s rate decision. As a result, traders say they are not surprised by Monday’s modest selloff.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Silver, Gold Active as Bernanke Expresses Some Concerns (SLV) (GLD)
- UPDATE: Intuitive Surgical (ISRG) Jury Reaches Positive Verdict in Robot Case; Shares Rise
- Gold Lower Ahead of FOMC Minutes on Signs of Early QE Exit (GLD) (IAU)
Create E-mail Alert Related Categories
Commodities, Fed, Trader Talk
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
