Monday October 28, 2013 08:06
Gold again tested the $1,355 level overnight, as traders await the FOMC announcement this week. There may be another pop, as traders act surprised when the Fed indicates that the economic data is not conclusive enough to warrant the beginning of tapering. I like my odds, but, in case I am dead wrong and the Fed does announce a pull-back in bond buying, the market will be sold aggressively. A tapering move, before next year, is not priced into the market, at all, at this point. The market continues to be well bid on dips, with $1,325 a solid level of support, with a break of $1,355 suggesting a test of $1,377. The market looks extremely organized, which “generally” suggests a bullish posture.