Gold sinks for the second day
Gold is at the lows of the day, down $20 to $1474 in a break below the lows of the week.
The key level now is the September 30 low of $1459.
Gold has become something akin to a pure play trade on global central bank easing. The rising chance of a US-China trade ceasefire is lowering the odds of a Fed cut on October 30. The probability has fallen to 65% from a near-certainty a week ago.
Next week will be a big one for gold because there are so many Fed speakers on the agenda. The blackout period starts Oct 19 so if the Fed isn’t going to cut, policymakers will need to send a strong signal beforehand.