FUNDAMENTALS

Gold dipped marginally marking second consecutive loss on Wednesday as stronger dollar and weakness in crude oil prices triggered profit booking in the metal. Gold for December delivery on the COMEX shed 60 cents to close the session at $735.70 an ounce.

The dollar strengthened against major counterparts for the third consecutive session Wednesday after the release of data showing modest expansion in the nonmanufacturing   sector of the US economy during September. The Institute for Supply Management's nonmanufacturing index expanded at its slowest pace since March, falling to a reading of 54.8% from 55.8% in August. The Dollar Index rose 0.3%. Strength in dollar after recent prolonged decline, is inducing investors to book profit in gold.

The total assets under exchange-traded funds (ETFs) in India rose marginally at the end of September, but major funds saw some redemption according to the media reports. The total collection inched higher to 3.38 tonnes from 3.33 tonnes at the end of August.

About 3,000 miners are trapped at a South African gold mine owned by Harmony Gold Mining Ltd., though no injuries have been reported.

TECHNICALS

Bearish long day pattern depicts dominance of bears. The prices closed below 9-days EMA, which supports bulls in short run. MACD has made bearish crossover in positive region. Stochastic is supporting bulls, however overbought levels warrant caution to bulls. The prices are likely to see volatile action with bearish bias.

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