![\"Image\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202309\/20230919-JMU-01_iuw141.png\")
<\/p>\nThe FOMC announcement tomorrow afternoon could send gold to new highs.<\/p>\n
Of course, this shouldn’t come as a surprise. The price of gold is often volatile around Fed days.<\/p>\n
For example, gold spiked $60\/oz. right after the FOMC meeting in July. After the June meeting, it dropped $48 in two days. And after rallying $50\/oz. In the days prior to the meeting in May, gold spent the next two weeks losing more than $100\/oz.<\/p>\n
But here’s why this week’s meeting could trigger a larger-than-average move…<\/p>\n
First, take a look at this chart…<\/p>\n
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Similar to the chart of the S&P 500 we looked at last Thursday<\/a>, gold is forming a “consolidating triangle” pattern. This happens as the price makes a series of lower highs and higher lows.<\/p>\n All the moving averages have coiled together. And all the momentum indicators at the bottom of the chart are in neutral territory.<\/p>\n Energy is building for gold to make a big move.<\/p>\n How big?<\/p>\n Based on the height of the triangle pattern, gold could move as much as $150\/oz. higher or lower.<\/p>\n In the days ahead, gold could be trading at new highs near $2,100\/oz., or it could tumble back down towards the March low near $1,800.<\/p>\n Just like the S&P 500 chart, though, there is no edge to either side at the moment. Betting on the direction at this point is like betting on a coin flip. <\/p>\n Most traders are probably better off waiting for gold to break out of its consolidating triangle – making either a move above $1,975 or below $1,925.<\/p>\n <\/p>\n Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n <\/p>\n One way or another, though, the FOMC announcement on Wednesday is shaping up to be a pivotal event for both the broad stock market and for gold.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n <\/p>\n\n\n![\"Signature\"](\"https:\/\/files.jeffclarktrader.com\/global\/signatures\/jeff-clark-signature.png\")
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