Gold Trader: $1,220 and $1,250 are Key Levels to Watch Ahead of FOMC Decision

Gold trading has been choppy this week, with much of the selling occurring near the open of the equity market. Eric Zuccarelli, independent metals trader on the trading floor of the NYMEX, tells TheStreet’s Jill Malandrino gold spiked to the $1,350 level last week and failed to break through and move higher. Now we have come back to test resistance levels which are now supported at the $1,320-$1,325 an ounce level. The fear factor has come off the table as the equity market has seen a monster level, explains Zuccarelli. He says gold and the direction of the U.S. dollar will certainly move based off of the results of the FOMC meeting Wednesday. Zuccarelli says, where the dollar goes, gold will follow but in the opposite direction. $1,320 on the downside and $1,350 on the upside remain key trading levels to watch in the near term.