Gold is not following through to the upside, and that leaves it vulnerable.
Although the Federal Reserve's minutes provided no clear answers, many analysts argue that when you listen to recent comments, and couple those with the minutes, a September taper continues to be a likely scenario. According to the minutes, Federal Open Market Committee members broadly suggested that as long as a careful decision is made based upon improving economic conditions, a reduction in easing will definitely be on the table for the September meeting.
Gold had a choppy reaction at first, testing the session lows before making new highs, and reaching $1,378.90. Gold then finished electronic trading back below the $1,368 to $1,370 level. In Thursday's session, however, gold has shown strength, after putting in a higher low against major support at $1,352, with a low of $1,354.50.
The market is obviously in a newly defined range of $1,352 to $1,383. A weaker dollar and sliding stock market has been supportive for gold, but the looming uncertainty of the September meeting has held traders back from making any big bets out of this current range.
That means that making money in gold has actually gotten pretty easy. Traders on Thursday should just play the range, while using levels within it for intraday entries and exits.