GOLD
HIGHLIGHTS OF THE WEEK:
- Peru’s union officials are planning a national strike starting Nov. 5. This might impact output at the Yanacocha gold mine, one of the world's largest gold mine.
- Turkish gold bullion imports fell 48.9% to 13.605 tons in September from 26.604 tons a year earlier, according to the report of the Istanbul Gold Exchange.
- Signatories to the CBGA are expected to have sold 475 metric tons of gold in the third year of the current agreement, according to the World Gold Council. This is up from 395.8 tons sold in the second year of the agreement.
- The South African government has ordered Elandsrand mine of Harmony Gold Mining Co. to be closed for up to six weeks as an investigation into the cause of the accident in which about 3,200 workers were trapped, is carried out.
- The funds continued to buy gold in the week as depicted by the record net long positions of funds on the Comex division of the New York Mercantile Exchange. The funds were net long by 194,911 lots for futures and options combined.
- Gold holdings of StreetTRACKS Gold Shares, the largest gold ETF declined marginally by 0.03% to 577.85 tonnes during the week. Similarly holdings of COMEX Gold Trust declined by 0.03% to 50 tonnes.
MARKET COMMENTARY:
Gold ended a choppy week with marginal losses. The market shrugged off the initial weakness to recoup most of the losses as strong investment demand and slight weakness in dollar towards the end of the week supported the precious metals. Gold for December delivery at COMEX shed $2.8 during the week to close at $747.20 an ounce after trading as low as $726.3. December gold on MCX ended the session at Rs 9522 per 10gm on Friday.
FUNDAMENTAL OUTLOOK:
Gold is likely to trade with positive bias supported by strong investment demand.
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