NEW YORK (TheStreet) -- Gold prices will move following the release of the Federal Reserve's Open Market Committee results on Wednesday.
Mahir Dange, an options trader for Grafite Capital, told TheStreet's Joe Deaux that tapering has started to be priced in.
During a previous Fed meeting, when tapering became a common topic, gold rapidly traded down to the $1,175 level, before quickly bouncing higher. Dange said that near-term resistance was around $1,425 and that $1,351 was an important level, but gold traded straight through it on the downside.
Now Dange is focused on two new levels: $1,300 as support and $1,351 as resistance. A breakthrough of either of those levels will pave the way for the next $50 move in gold prices. He concluded that if the Fed down reduce stimilus, markets will likely rally higher. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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