In the early morning trade, gold and silver are trading up breaking its five week high. As the Fed concludes today its two-day policy meeting, the market seems to indicate that it will have bullish undertones for precious metals prices. Adding to the good news for precious metals, there has been a recent increase in open interest in gold and silver. As well as the news that central banks have remained net buyers of gold and silver in the recent months.
It is widely believed that the Fed will delay tapering up until March 2014 at minimum.
From a technical point of view, last week gold broke above $1353.00, which was a very significant resistant level, causing many technical traders to buy into the market on the long side resulting in the recent rise in open interest. Look for gold to close above $1,362…the next rally should be all the way up to $1400.0-$1434.0.