Kitco News– Gold is trading sideways ahead of next week’s much anticipated Federal Open Market Committee meeting but the metal managed to rebound after hitting a 4-week low on Wednesday. One technical analyst explained that as long as gold is trading above $1,108-$1,109 — the metal has the opportunity to see a bounce to the upside. ‘[I]f it breaks below $1,109 it could probably run to $1,095 – however, as of now, it seems to have found some support,’ said Gary Wagner, editor at the goldforecast.com. December Comex gold was last up $7.50 at $1,109.70 an ounce. December Comex silver was last up $0.074 at $14.655 an ounce. Wagner said he is paying close attention to gold’s movement. ‘[T]he 21- day moving average has actually crossed above the longer term moving average, which is a golden cross in technical terms, and it could be conveying that we found some support in gold,’ he said in an interview with Kitco News. As for the upcoming FOMC and how gold will react, Wagner said it is tough to say. ‘No one knows what the Fed will do — I think that the Fed has backed themselves in a corner, where it is difficult for them to raise rates but there is underlying pressure for them to do so,’ he said.
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