Bernanke is scheduled to speak this afternoon about the impact of the Great Recession on the way central banks conduct themselves and tomorrow the Beige Book regional economic conditions survey will be released.
As with any of Bernanke’s speeches, traders will be listening for any indication of QE3-type program that expands the Fed’s balance sheet in the future.
If any such language pops up today, the question turns to what it going wrong in the economy to make added stimulus necessary. In that case, upcoming economic data — starting with the Beige Book — become even more crucial.
The technical outlook for gold has changed little in the past three weeks, with gold prices trading in a $1,653 to $1,703 range.
Bullion has shown a bearish posture by printing the candle formation called “three inside down,” which is simply a large up or bullish candle followed by two down or bearish candles within — or inside — its price range.
This candle formation is setting up sellers to challenge the horizontal support at $1,653 and any break to the downside will expose gold prices to the next support level at $1,620.
One the easiest ways to gain exposure to gold is through the SPDR Gold Trust ETF (NYSE:GLD), which seeks to replicate the price performance of gold bullion by holding the physical metal.
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