NEW YORK (TheStreet) -- The last time the Federal Reserve announced it would taper its asset purchases, precious metals actually moved higher, Mike McGlone, research director at ETF Securities U.S., told TheStreet's Joe Deaux. The Fed will release its latest meeting minutes later Wednesday.

Any change in the current monetary policy tapering is unlikely, according to McGlone. The only reason it would possibly change is if there was deflation risk to the economy. 

As for gold prices, McGlone suggested investors trim their positions; short-term, tactical traders will likely be taking profits. The metal has finally made its way above the 200-day moving average, after $1,200 per ounce proved to be strong support. 

Despite his recent research saying otherwise, McGlone suggested that if global central banks were to begin tightening their monetary policy it could cause gold prices to move lower. 

However, that recent research showed that last time the Fed tightened its monetary policy in 2004 through 2006, gold prices moved from roughly $400 per ounce to $600 per ounce. 

McGlone is optimistic on the yellow metal over the long-term, but thinks gold could use a break in the short term.

-- 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.

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