Gold Slammed Following FOMC Minutes (GLD)
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SPDR Gold Trust ETF (NYSE: GLD) traded significantly lower following the release of the FOMC minutes on Wednesday. Investors were hoping for significant hints regarding potential QE3 in the U.S., which did not come.
The spot price of gold traded at $1576 prior to the release. It is now testing support just ahead of $1550, currently at $1568 per ounce. Support in the $1550 area is strong and GLD will be facing a difficult road if it wants to break lower.
A failure today points to extremely choppy price action going forward, say traders. A break of $1550 will face more support at $1530, and risks of a reversal off these levels are considered to be high. However, with a higher U.S. dollar helping fuel the selloff, gold’s long anticipated elevator ride down could be on the way.
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The spot price of gold traded at $1576 prior to the release. It is now testing support just ahead of $1550, currently at $1568 per ounce. Support in the $1550 area is strong and GLD will be facing a difficult road if it wants to break lower.
A failure today points to extremely choppy price action going forward, say traders. A break of $1550 will face more support at $1530, and risks of a reversal off these levels are considered to be high. However, with a higher U.S. dollar helping fuel the selloff, gold’s long anticipated elevator ride down could be on the way.
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