We have a Fed announcement tomorrow at 2:00 PM, followed by Chairman Powell speaking at 2:30. There is some speculation the Fed will increase their asset purchases. I don’t think they will do anything until the employment numbers get much worse. Either way, it will be important to monitor gold’s reaction following their decision.
Vaccine news continues to be a headwind for gold. The FDA should approve a second vaccine for emergency use on Thursday. The Pfizer vaccine is already making its way across the globe.
Gold is bouncing after reaching $1820 yesterday. Prices could rebound for a day or two before turning back lower. A breakdown below $1820 (yesterday’s low) will confirm the next leg lower.