Yesterday afternoon, the SPDR Gold Trust (ETF) (GLD) traded higher ahead of the highly anticipated Federal Open Market Committee (FOMC) announcement. As many of you already know, when gold and silver rise they have been one of the best indicators of inflation in the stock market. Recently, gold and silver have come under some selling pressure despite the recent stock market surge, however, gold and the major stock indexes are usually synonymous, trading higher together.
Short term traders should watch for intra-day resistance for the GLD around the $163.30, and $164.40 levels. The daily chart of the GLD should have important resistance around the $165.25 area. Some other ways that traders can follow the long side of gold include using the iShares Gold Trust (ETF) (IAU), Sprott Physical Gold Trust (PHYS), and the Deutsche Bank AG DB Gold Double Long ETN (DGP).