GOLD

FUNDAMENTALS

Gold climbed further on Friday as record rally in platinum and firm crude oil pushed the prices higher. The news of the world's top gold miners AngloGold Ashanti and Buenaventura reducing their hedge-books also boosted prices. Gold for April delivery rose $12.30 to close the session at $922.30 an ounce on the New York Mercantile Exchange. The contract added $8.8 during the week.

Supply concerns in South Africa continue to give support to the gold market. Severe power shortages in South Africa, the world's second-largest gold producer and the biggest platinum producer, have forced many major mining companies to lower production. South Africa is the second largest gold producer in the world, accounting for around 11% (272 tonnes) of global new mine production in 2007.

The dollar witnessed range bound movements against major counterparts on Friday as the currency market awaited a meeting of Group of Seven finance ministers and central bankers. The dollar index, which tracks the performance of the greenback against a basket of six major currencies, declined 0.3% to 76.655.

The fundamentals continue to support gold with declining output and increasing investment demand for the metal. Slight sluggishness in jewellery demand is not likely to affect the strength in the market much.  

TECHNICALS

The prices closed above short term and medium term EMA that supports bulls. MACD is showing decrease in bullish momentum.  Stochastic is running down in normal region. Gold futures are likely to trade range bound with bullish bias on Saturday.

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