Gold Traders Await FOMC Meeting
(Kitco News)- Gold is hanging on, with minor volatility overnight. The$1,218-1,220 level was again tested overnight but with little enthusiasm.Traders are probing for weak longs. The market is now awaiting the Federal OpenMarket Committee meeting which begins tomorrow. It is not expected that the Fedwill raise rates at this meeting, but if they do, gold will be soldaggressively. The most likely outcome will be no change but the market will nowfocus on Fed language to see if President Trump's remarks, that the Fed wasundoing all of his economic progress with higher rates, has played a chord withany of the Fed members. With a posted GDP growth rate north of 4% in the secondquarter, it may keep the Fed's trajectory of two more hikes this year in play.Technically, no change in the pattern. Support around $1,220; resistance at$1,237. August sometimes can surprise. Markets are very thin and many bigproducers in Europe are closed or at limited capacity. Will not take much forvolatility to increase.
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