Yesterday, we took a look at how gold was trading after the World Gold Council’s Gold Demand Trend report was released ahead of the Federal Reserve minutes release at 2pm today.

Image courtesy the Bank Of England: http://www.flickr.com/photos/bankofengland/Yesterday’s gold session (GLD, quote) (pit/electric combined) eked out a green candle but never made it above the T3 Tilson and began today’s session below T3 but within the shadow of yesterday’s candle on roughly 3/4 ‘s of yesterday’s full session volume, telling us a lot of jockeying is occurring ahead the release.

Look for volatility as we approach FOMC Dudley Speech at 10am, Fed Chair Yellen’s speech at 11:30am and FOMC Member Kocherlakota at 1:30pm. All will be focused on these speeches ahead of the 2pm release.

Sentiment is now leaning to a more hawkish sentiment from a round of speeches yesterday and could add pressure to the price of gold.

Gold remains well within the channel, and I still want to play the same way…by placing entry orders 15 cents above and below the high and low of the channel and grab any potential breakout of not only the Fed meeting but also the upcoming Ukraine elections on Sunday. If we get a significant pop outside of the channel on the Fed statement, I will look to protect the position going into the weekend prior to the elections using options.

 

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