Gold nears the highs of the month
Gold is up $10 to $1514 in a rise to a two-week high.
The dollar is modestly stronger over the past two days but the FX moves haven't played a big part in the gain. Instead, the market is looking towards a Fed rate cut next week and potentially towards year-end volatility.
The gains today get gold back above the 55-day moving average and clearly break the downtrend that started from the September high. The October high of $1519 is the next resistance level to watch.
What the bulls should worry about is a Fed that cuts but pushes back against a December cut -- a hawkish cut. A Dec cut is currently priced at 34%. The caveat is that the Fed isn't likely to take anything off the table and it's been endlessly pushed around by markets so it's not going to come off quickly.
