Greetings! ,

Of particular interest today was the release of minutes to the latest meeting of the Federal Open Market Committee (FOMC).

According to MarketWatch, only a few members of the FOMC favored another round of quantitative easing, or bond purchases. A discussion of the economy was best characterized as downbeat. There was some murmuring, however, that a bit of preemptive money policy tightening could occur.

It should be noted that GDP accelerated 1% from 1.8% to 2.8%, Q4 over Q3, 2011. Fed officials generally expect only modest growth in the coming quarters coupled with a gradual decline in the unemployment rate. (Read excerpts)

In light of this report, bargain hunters are scouting the market terrain carefully and aggressively purchasing on any dips found in gold prices.

As always wishing you good trading,

       Today's video 

 Subscribers

Log-in

Proper Action

GOLD: Maintain Long @1580. Our current stop sits just below 1706. My recommendation is to maintain your current position and stop placement.

MARKET FORECAST

Gary S. Wagner

Gold & Silver: on a technical basis both gold and silver seem to be forming a base as they trade in a narrowly-defined range. Specifically, gold has been more than resilient: each time sellers push the market lower, bargain hunters step in when gold approaches $1700 per ounce. There can be no doubt that 1700 is, and shall remain, a solid level of support. As we have noted over the last few trading days, with this compression of range it is possible that a triangle minor fourth wave could be forming in gold. If this turns out to be the case look for some breakout as gold reaches the apex of the triangle. Typically a breakout will move in the direction of the predominant trend, and that has been up.

Gold 720 Minute Chart

 SILVER Daily Chart:

Copyright (c) 2011 Wagner Financial Group