The gold markets rallied during the session on Tuesday, but found the $1720 level to be resistive yet again. Nonetheless, it does look like we are starting to pick up steam a little bit from the $1700 level, and the FMOC meeting later today will more than likely be the catalyst for the next move in this market.
If the Federal Reserve decides to expand its easing program, we will see gold rise in value. This would be due to the devaluation of the US dollar, and the fact that so many central banks around the world are currently doing the same thing. Because of this, we believe in the long-term story in gold, but would like to see a break above the $1720 level in order to start buying again.
So, my trade strategy is waiting for the $1720 :)
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