GOLD

FUNDAMENTALS

Gold surged to close above $800 on Thursday as weakness in dollar and inflation concerns due to soaring crude oil prices underpinned the prices. Gold for December delivery on the COMEX closed the session at record high levels of $808.50 an ounce on Friday with a gain of $14.80 an ounce. The contract saw the highs of $810.70 an ounce during the session.  

Dollar failed to extend the yesterday’s minor bounce back and slipped sharply against major counterparts. The euro touched a fresh record high against the dollar Friday, rising to $1.4527.

The dollar index fell 0.4% at 76.30.

AngloGold Ashanti Ltd shut one of its larger mines in South Africa on Friday after a miner was killed in a rock-fall, as a miners' strike to protest against a spate of mine deaths in the country loomed.

Meanwhile, the Tanzania's Mines, Energy, Construction and Allied Workers' Union said Friday that the strike by workers of Bulyanhulu gold mine in Tanzania is legal because workers followed the right procedures before embarking on it. The workers of Bulyanhulu gold mine have been on strike since last week, after labor talks broke down with management over improved pay, working conditions as well as medical care.

TECHNICALS

The bullish long day pattern of candlestick shows firmness in the market. The prices continue to hold the levels above short term and medium term EMAs, which supports bulls. Rising MACD in positive region shows increasing bullish momentum. The overbought levels of RSI warrant caution. Prices are likely to see range bound action.

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