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The yellow metal has been higher again this week. Gold posted its second consecutive positive week as of writing.

The main driver behind the move is the expectation that the Fed will cut rates again when it meets next week. Since the September FOMC meeting, data has been consistently poor. In particular, the manufacturing reading that we saw for September.

While this week, we saw manufacturing rebounding slightly over October, the data was accompanied by a sharp drop in US durable goods. With data remaining weak, the market is now looking for the Fed to ease again in October. This is keeping gold prices supported in the interim as the outlook for USD remains subdued.

Weakness in USD and expectations that the Fed will ease again this month have been providing upside pressure for gold. However, this upside has been offset somewhat by improved risk appetite thanks to increased expectations of a US-China trade deal.

The two countries have continued talks this week. There have been se...

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