NEW YORK (TheStreet) -- Gold is almost always volatile when there is a Federal Reserve meeting on tap. Phil Streible, senior commodities broker at RJO Futures, told TheStreet's Joe Deaux that gold prices haven't fluctuated much lately, holding steady near the $1,350 level.
Streible wondered if any news out of the Fed meeting, beginning tomorrow, and the recently weak economic data was baked into gold prices. Investors also want to know if the weak economic data and any future government shutdown will again delay the Fed's tapering plans, he said.
In terms of price action, he suggested gold could consolidate and eventually drift down towards the $1,338 level, where it should find solid support. From there, prices can start to head higher.
Regarding the Federal Open Market Committee meeting, Streible said doesn't expect the Fed to announce any tapering of its asset purchases yet. It's likely the Fed will stick with its wait-and-see approach, which should pave the way to $1,400 for gold prices, he concluded.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.