Despite Gold's Strong Move, Range-Bound Trading Will Be the Trend
Gold trading has been basis more on technical levels than gold fundamentals, as traders got short through $1,180, says Tom Vitiello of Aurum Options Strategies.
Tom Vitiello of Aurum Options Strategies tells TheStreet's Jill Malandrino gold trading has been basis more on technical levels than gold fundamentals, as traders got short through $1,180. Bullish fundamentals reversed that trend with more rhetoric out of Greece and poor economic data in the U.S., and many of those shorts were taken out from last Friday and through Tuesday morning. Gold is now back above $1,210 as the FOMC meeting takes place over the next two days. But, Vitiello explains, gold trading will continue to be uncertain and range bound until there is more clarity with Greece's ability to satisfy its debt and the timing of U.S. interest rate hikes.
