Fed Meeting Helps Consolidate Gold Futures

Gold futures are virtually at a standstill ahead of today’s conclusion of a two-day Federal Open Market Committee meeting which is intended more for monetary and interest-rate policy (than gold itself). Gold futures price swings are said to have slumped to their lowest since October 2010.

So far this month, gold futures have traded in a range of $45 per ounce compared with the $74 per ounce range just last month. According to data compelled by industry experts, this precious metal’s 60-day historical volatility has dropped to 11.4 – the lowest since mid-October 2010.

Gold (futures) is trading in a more defensive position as the equity market continues to trade within a tight trading range. Economic data, deflation and geopolitical risks do not pose immediate threats that would drive gold prices higher in the short-term,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, regarding the current gold futures situation.Craney added, “The bulls in the gold market need some surprise from any of these catalysts to favor higher prices.”

The trend for gold futures is technically down with a seasonal tendency to continue lower until the end of the month. I am currently short gold futures coming into today’s two-day meeting conclusion of the Fed, and have a rather tight stop above the market.

ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.