Tommorrow is a big day for the Fed and whether are not they we lower the Fed Funds rate. According to CME website under Fed Interest Rate Watch there is a 80% the interest rate will be dropped 25 bps. If the Fed does decide to lower interest this can increase the strain on the U.S. dollar and cause gold and oil to shoot up even higher. The chart above is a Gold ETF DGP with a 6 month time frame. As you can see Gold has been gettin hammered ever since there historic apex in mid March 2008. Yesterday DGP broke under its lower Bollinger Band indicating overselling. I have a limit order placed at 20.25 for tommorrow subject to adjusting depending on which the market is heading towards on the opening bell.
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