Gold Futures Find Support on Dollar Drop

The recent slide in gold futures may have found temporary support with the US Dollar dropping.  Gold is an alternative investment for investors to put their money ahead of the federal reserve’s announcement on monetary policy later today.

Both gold futures and the US Dollar have been sliding these past few days, but the precious metal should always find support with a “tangible” use rather than “just paper.”  Gold futures have been trading 56% below the 100-day average as this market tests its recent lows.
           
Following a strong sell off the previous 4-weeks, the USD is in a holding pattern today ahead of the Fed Announcement this afternoon,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, regarding the current gold futures situation.

The trend for gold futures remains down, however, the market has been trading absolutely sideways since the April low.  A breakout below the $1,323 per ounce April low could send gold futures down significantly lower.

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