It's June 20th and the market is waiting on news that the FOMC will announce a new QE today.
The last two meets on April 25th and March 13th have been quite affairs, but this one is different as Operation twist is ending later this month and reference to that needs to be made today.
An extension of the ending operation twist seems to be the most likely outcome. Equity markets could be disappointed as this would not be an outright QE but the USD could still weaken and the markets would still expect new QE in the coming months.
Here's a look at the charts of Gold and silver which should get vertical moves today
Gold Comex :
Silver Comex :
The charts above are one year composites of Gold and Silver in dollar terms and show the Gold future at POC currently and the Silver Future at one year Value low.
Let's look at the gold and Silver charts in rupee terms as they are traded on the MCX.
Gold has been on a steady uptrend since the lows in May and the POC line developing up shows the move has been accepted higher and is value.
It's currently trading at it's highest volume print and with an LVN below at 29800 there is adequate support.
Below 29800 we could see slight weakness to maybe 29430. Levels are all August Future.
Unlike Gold, Silver has been relatively quieter in the past month and mote consolidating in a range after the sharp sell in early May.
It's best to play Silver on the Revision to the mean concept and any large move today may still bring it back to 54200- 54500 where the market has found fair price.
As in any news announcements, anything can happen a volumes driven by Greed and fear determine price movement.
If you are trading later in the evening, trade cautiously. Vertical moves cannot be ruled out.