Futures : Metals Update

Precious Metals showed strength yesterday, much in line with the Crude Oil trade.

As while the FOMC was expected to remain on hold, any warnings on a bottom in the economy or higher inflation would lead to a higher dollar and therefore lower metals prices.

On the other hand, there is nothing to indicate the FOMC has changed their approach to monetary policy, suggesting that the current upside could continue, as no change is supportive of the current market direction.

Our strategy for today would be a buy of April Gold on a break of 660.00. Targeting 675.00. Stops below 656.00. However keep solid trading tactics, meaning keep good discipline, this is break-out strategy.

This is a very reactionary approach to today's trade which will favor the more active trader. Also, you will need to keep a watchful eye on the US dollar.