Gold Popped as U.S. Tests ISIS but Traders Need More Fundamentals

A bit of uncertainty has been removed from the market place now that the FOMC has provided deliberate, clear foresight into future QE3 policy. Eric Zuccarelli, metals trader on the trading floor of the NYMEX, tells TheStreet’s Jill Malandrino gold needs more than just FOMC clarity. He says gold has certainly been in a bear market since the beginning of August, shaving off another $100 since then and almost touched that $1200 area. There was a bit of a pop in gold following the ISIS policy escalation Monday night and you may see a bit of follow-through to the upside, but the strength of the U.S. dollar is really what’s hurting levels in the yellow metal. Directionally, traders are seeing some upside movement in the morning and evening trade, but most of that is given back during the day. Key levels Zuccarelli is watching are 1240-1250 to the upside and a late 2013-early 2014 low of 1185.

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