18 Sept Wednesday View

After trading in a range for three days, early today morning, gold tested a break of psychological level of 31325(USD 1300.00).

Market is expecting a long awaited announcement on Fed's reduction of its stimulus program in FOMC statement due later today at 11:45 PM. A reduction within a bracket of 8-10 Billion is expected which is providing support for gold for now and putting pressure on USD and bond yields. But, importantly, a bigger than expected reduction may surprise the gold market triggering losses further below. Psychological level of 31325 (USD 1300.00) is under test as of now, and the next very important level is 30600 (USD 1269.09), which if broken should be considered that the correction from 28430 (USD 1170.10) has completed and further fall may be seen. Stay Safe.

Trade Happy, Trade Safe :)