Gold traded slightly higher Tuesday, reversing some of Monday’s losses as investors await Thursday’s key announcement from the Federal Reserve.
Outside markets were slightly positive as well, with the stock indices and energy markets poised for higher closes. It looks to me that traders are evening up positions across the board as the market potentially due to traders awaiting another potential round of quantitative easing.
Trading volume has been significantly lower as well the past two days, which coincides with not much information released on the economic front. Gold today was a technical trade in my view, as Gold topped out at 1640.5, a half point higher than the daily resistance level, while it settled just above the pivot number. Outside of something fundamental tomorrow, I think we will see more of the same in tomorrow’s trade, a two sided light volume choppy session.
Unlike the first two days of this week, we will have some economic data worth paying attention to tomorrow morning.
We have weekly mortgage applications, energy inventories, import and export prices, and a 10 year note auction released tomorrow. Please call or email me with questions or comments.
Daily Swing #s GCZ2 (9/12)