GOLD

FUNDAMENTALS

Gold retreated early gains Friday to close with marginal losses as traders booked profit ahead of weekend.  Gold for December delivery on the COMEX shed 30 cents to close the session at $768.40 an ounce.

The dollar dipped further on the last trading day of the week as currency market focused on G7 meeting. Meanwhile, ECB President Jean-Claude Trichet said Friday it was "very important" to hear the U.S. saying a strong dollar is in the country's interest, and he said that the ECB's monetary policy stance has remained unchanged since its last interest rate setting meeting.

Soaring crude oil prices, geopolitical tensions, weak dollar and falling gold production in major producing nations are the main factors behind gold’s strength at this stage.

Peru's output of gold declined in August, the Energy and Mines Ministry said Friday. The government said that gold output totaled 13,244 kilograms in August, down 19% from a year earlier. That decline was mainly tied to lower output at Minera Yanacocha, which runs a large gold mine in northern Peru.

Russian foreign exchange and gold reserves rose 40.1 % since Jan. 1 to $425.37 billion as of Oct. 1 according top the central bank of Russia. Monetary gold was estimated at $10.11 billion. Gold reserves amounted to 13.8 million troy ounces.

TECHNICALS

The prices closed above short term and medium term EMAs, which supports bulls. MACD is showing increase in bullish momentum. Stochastic is running down in overbought zone. Prices are likely to see range bound movement.

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