Overnight news was fairly sparse and as a result, the precious metals traded in tight ranges. As the debt crisis deepens in Europe, the broader euro-area unemployment rate has now reached 11.2%. This is a record high dating back to the inception of the recording of the data in 1995. There is also increased chatter surrounding the European Central Bank and it resuming its controversial bond-buying program and perhaps even pursuing quantitative easing.
Gold continues to pressure the pivotal resistance area of $1,628 – $1,630. Since the beginning of June, this area has been approached and / or touched thirteen times without decisively closing above it. It has also touched it in the last three trading days. With rumors last week of QE3 in the US that lent legs to gold, all eyes will be eagerly awaiting further commentary or allusions to it at the FOMC statement tomorrow at 2:15 AM EST. Until a bullish statement is released, market participants are understandably wary about putting on new positions around gold’s precarious area here. A failure to finally break this $1,628 figure on the heels of a less than bullish FOMC meeting will not bode well for gold heading into August.