Comex Gold Weakens Ahead of FOMC Results
By Jim Wyckoff
Comex gold futures are trading moderately lower and near the daily low in late-morning dealings Wednesday. Prices dipped below the psychological support level of $1,600.00 and are presently hovering around that mark. The market sold off on some profit taking and position-evening ahead of the Wednesday afternoon FOMC statement from the U.S. Federal Reserve. It is not widely believed the Fed will announce a major new stimulus initiative (QE3) at this time. However, many believe such an announcement will occur in the coming weeks. Still, markets could move significantly in the aftermath of the FOMC statement, especially if there are some fresh hints dropped by the Fed on any future monetary actions, or lack thereof. December gold last traded down $14.00 at $1,600.60.