Gold is at a one-week low, down $16 to $1312.
The drop wipes out a modest rise in early European trading and breaks through a minor uptrend that formed after the Fed surprised markets by leaving QE in place. The next level of support is the Sept 24 low of $1305.
gold daily chart
The political trade on gold centers around the debt ceiling more than today’s budget shutdown. However, if the budget shutdown gives us a sense of how fanatical either side is, that could begin to lend a bid to gold.
Update: Down through $1305 to $1294. The pre-Fed low was $1292.
