Gold Trading Has Been Muted, Expect More Volatility Post-FOMC; Fed Likely to Move – Strategist

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KITCO NEWS — Gold prices remain weak ahead of the much anticipated Federal Open Market Committee (FOMC) decision on Thursday, but one analyst says get ready for the Fed to pull the trigger and gold action to resume. RJO Futures’ senior market strategist, Phil Streible, said the U.S. central bank may be ready to move on rate hikes and investors could see movement in gold. Streible described the recent gold action as ‘muted,’ with buyers and action coming in when gold dipped below $1,100. December gold futures were last quoted down 0.34% at 1,103.90 an ounce on Tuesday. Streible said he expects a tight range to continue for the metal heading into the meeting and then he anticipates volatility to ‘really’ pick up. ‘I think that the range that we are in now is $1,120 on the upside, that’s your key level of resistance and it’s also your 50-day moving average,’ he said. Speaking from the Chicago Mercantile Exchange on Tuesday, Streible said he is leaning a little bit more in favor of the Fed raising rates on Thursday. He added that despite the Fed missing its window of opportunity earlier this year, the central bank may have a chance to raise rates now that markets have stabilized.

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