Repeat The News?

As the week closes, so soon will the month close. Gold took a loss for the week, but should be up for the month. Today we are experiencing a bit of paralysis by analysis, the dollar's strength adding to the gold price while regular trading heads it in another direction.

U.S. equities markets again were up sharply, the mini-correction we've seen coming to an end - at least for the moment. Even an ebola threat in New York didn't interfere with the reluctance of traders to get too cozy with gold.

Another of the factors keeping those traders on the leash is the upcoming FOMC meeting on Tuesday and Wednesday. Although consensus says that this meeting will mark the end of the bond/paper buying known as QE3, one can never be sure. Not ending it is really the only surprise that could be up the Fed's sleeve before October ends.

You can be certain, though, that once the official FOMC press release is issued, there will be one set of analysts who will thump their desks while shouting that interest rates must be raised now. They will predominate and doves will huddle for safety. A few days later, the doves will flap and fly and the hawks will go back to their self-importance in private.

Crude oil and Brent North Sea oil fell again after seeing some bullishness emerge in the previous days. Oil can often be crucial for gold prices.

When energy prices go down, especially the price of gasoline, but also home heating oil and oil used for powering electric plants, the consumer has more money to spend on other goods and services. That drives other the price of stocks in other sectors up, making havens less attractive.

That notion added buoyancy to the S&P. And, all the indices took heart from a steady stream of positive earnings results from blue chip stocks. Microsoft and P&G led the way, although Amazon provided drag on Wall Street.

"Third-quarter earnings have been fantastic, but what we're looking at now are weakening trends in fourth-quarter estimates; that's a reason not to get too giddy," said Nick Raich, CEO at Earnings Scout. This is a developing trend among companies on the stock exchanges. They predict earnings to be low, the actual numbers come in much higher, and then the companies immediately begin predicting lower estimates for the following quarter. And people say gold is "manipulated"!

We will wait to see what the Fed has to say on Wednesday, see if there are any warning signs of any sort. Till then, gold will probably be moving in a narrow range, strictly from a fundamentals viewpoint. Once again, do pay close attention to technical

Wishing you as always, good trading,