Gold is currently trading in a narrowing range. It is stuck between 1395-1370 price levels. If you know how volatile the commodity is you would understand that a break is coming. Looking at hourly chart of gold I see that it is more bullish than bearish. You can clearly see that on these hourly charts gold is forming a bullish triangle, which means that the security will most likely break upwards, not downwards. How can you day trade this information? I tend to buy a break of 1392.50 level.
I do not rule the possibility of gold going down back to its’ most recent bottom of 1340. What can possibly push the security so much? FOMC rate decision is one the risk events that could easily push gold down to the above mentioned level or cause a breakout upwards. So, as you may see chart patterns are excellent opportunities of day trading gold on smaller time frames, such as 1 or 4 hour charts. I do not expect to see it till Wednesday when FOMC decision is released. They promised to quit their stimulation program pretty soon. If they tell that this is going to be this year, gold may rise, but if not, gold will probably fall.