Gold Consolidates With A String Of Lower Highs Ahead Of Fed Decision On Rates

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Gold futures were trading lower by $4.40 at $1103.30 per ounce in Tuesday's session. Along with major indexes, Gold futures have been in a holding pattern ahead of Thursday's FOMC meeting.

Over that last five trading sessions, the contract has been in a $1097.20 to $1124.70 trading range with a majority of the action taking place in the lower end of the range ($1100- $1112.00).

During the last five sessions, Gold has bottomed in a tight range surrounding the psychological support level of $1100, with all of the lows between $1097.70 and $1102.60. Despite building a formidable base to rally from, the rallies have ended earlier and earlier.

In fact, since reaching $1147.30 on September 9, it has put in place a series of nine consecutive lower highs, which is not a good sign for Gold bulls ahead of Thursday's interest rate decision.