Gold Continues Slide Ahead of FOMC Minutes (GLD)

The spot price of gold and SPDR Gold Trust ETF (NYSE: GLD) traded lower by 1.3 percent today, continuing a selloff that began 5 days ago. The move lower is partially driven by strength in the U.S. dollar index, which closed at its highest level since mid-2010. Like all commodities, gold and SPDR Gold Trust ETF (NYSE: GLD) trade relative to U.S. dollars and prices decline on dollar strength.

Today's downturn in gold was also related to positioning ahead of tomorrow's release of minutes from the FOMC meeting on June 19th. The minutes should give traders clues into the mind of Fed policy makers and hint at prospects of QE3. This could move gold lower tomorrow if outlook dims.

From a technical view, gold is in a range pattern between approximately $1530-1550 on the downside and $1630 on the top end. Price action is increasingly choppy with a downside bias.

SPDR Gold Trust ETF (NYSE: GLD) currently trades at 152.05. Spot gold trades at $1567 per ounce intraday on Tuesday.

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