Gold stocks moved higher in early trading in anticipation of the FOMC rate decision. The federal funds rate is 0.0—0.25% and I believe that rates will continue to remain at current levels until second half of the year.
Gold stocks have been on a down trend for nearly two months now. The long gold trade was do to fear and uncertainty of the financial system and many retail investors jump on board the trade after gold had passed $1000. During November '09 I believed the trade was overcrowded and gold was near a pull back.
I'm still watching gold and it will be a good trade sometime in the year. I'm still waiting for a good entry level. Gold around $1000 could be a good entry.
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