Gold prices are on track for their fifth day of losses in the past six trading sessions. There are several reasons for this trend. Tensions are seen easing with North Korea, at least for the time being. There was less damage from Hurricane Irma than expected. The dollar has been strengthening. And from a technical standpoint, gold was due for a pullback.
But Gold has now broken below the $1,320 support level. Imvestors are nervously trading the two-day Federal Open Market Committee meeting beginning tomorrow. Although a Fed rate increase is not on the table for September, traders will look for signals on when the Fed may begin to shrink its balance sheet. The dollar has continued to gain against the yen, which remains the pivot currency for signals on gold’s direction. President Trump will speak tomorrow morning at the U.N. General Assembly and is expected to reference North Korea which could send gold much higher or lower. Watch the $1,300 level!