KITCO NEWS – Gold prices remain volatile on day-one of this month’s Federal Open Market Committee monetary policy meeting, and one senior commodities strategist says the central bank may actually ‘help’ gold. ‘Obviously gold struggled the last several months..we’ve been trading in a range,’ said Carley Garner, co-founder of DeCarley Trading. ‘In our opinion though, all is not lost for the gold bugs and gold bulls,’ she said in an interview with Kitco News. As markets await the conclusion of the two-day FOMC meeting tomorrow, Garner said the U.S. Federal Reserve may have a ‘somewhat positive effect’ on the metal. ‘I think the Fed might actually help out the gold market,’ she noted. As Garner analyzes longer term charts, she highlighted that gold bottoms are historically ‘messy’ and right now, the metal is finding support at the $1,080 level. ‘I think it’s got a pretty good shot at holding there,’ she said, adding that we cannot entirely rule out the possibility of gold going down to $1,040 with another selloff. ‘But, once we finally get all that flush out of the system, I think that we’re ready for a rebound.’ Garner also pointed to gold’s Relative Strength Index (RSI) and said that historically, looking back a decade, it dipped below 30 roughly three or four times, and at all these occasions, the metal rebounded. ‘So, either the chart is lying to us, or this could be one of the greatest opportunities for the bulls we’ve seen in years.’
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