NEW YORK ( TheStreet) -- No one seems to be talking about the upcoming Federal Open Market Committee meeting on Wednesday, but Thomas Vitiello of Aurum Options told TheStreet's Joe Deaux that he hasn't forgotten about it.
Gold prices are essentially unchanged, hovering just under the $1,330 level. Vitiello said that it's widely expected the Federal Reserve will begin tapering in December or February, and that's already being priced into the gold market.
What's not being priced in is a U.S. default, with most investors expecting a resolution in Washington, he said. As the range for gold continues to tighten, Vitiello said it will likely exacerbate the move when it breaks out, whether it be higher or lower.
Regarding silver, he noted it tends to be more volatile, with a higher beta -- meaning that a move higher or lower will likely be bigger than that of gold's.Vitiello concluded that he wants to mitigate risk, but still have exposure to a big move. To do so, he suggested that option spread positions should accomplish both goals. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell