Here’s all the reasons gold is up more than 2% today:
- U.S. consumer sentiment fell to its second-lowest level ON RECORD.
- The government shutdown, the longest in U.S. history, is likely coming to an end this week, easing pressure on the U.S. dollar.
- The US economy likely lost jobs in October, and layoffs reached a 20-year high.
Traders now see about a 70% chance of a rate cut next month.
Gold, therefore, is up ~2.8% on Monday to ~$4,115. The XAUUSD RSI indicator has moved above its midline, showing mild buying pressure, while the 50-day moving average near $3,891 may be acting as key support.
So, is 2.8% just the start of a bigger rally?
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