The precious metals are trading in uninspiring ranges so far today and this should not come as much of a surprise.  Market participants are trimming positions ahead of the much anticipated FOMC tomorrow, where it is widely expected that the Fed will raise interest rates for the first time in nearly ten years.  Given that gold has been in a steep decline since October and is hovering around six year lows, it appears that the market has already priced in a rate hike.  For that reason, the Fed raising interest rates should not catch the market off guard, and may limit the downside for gold.  What would take the market by surprise is if the Fed does not raise the rate or if the tone of the commentary from the meeting is overly dovish.  In this scenario, the already highly short-positioned gold market would be forced to cover positions which could lead to a sharp jump higher for the yellow metal.  The risk of an exaggerated reactionary move to the Fed seems to be weighted higher rather than lower… we will of course see tomorrow though!  The FOMC decision will come out at 11 AM PST tomorrow… stay tuned!