GOLD

FUNDAMENTALS

Gold traded range bound with bearish bias at MCX on Saturday. December gold traded in the range of Rs 9508-9532 per 10 gm before closing with marginal loss at Rs 9513 per 10 gm. In the international markets, gold climbed further on Friday as weakness in dollar and strength in crude oil prices triggered buying in the metal. Gold for December delivery on the COMEX gained $3.4 to close at $747.20 an ounce. The contract traded in the range of  $732.7-$750.70 an ounce during the session.

The dollar retreated the earlier gains after the September employment report showed a gain of 110,000 payrolls and large upward revisions of previous months. The currency market also ignored the Fed vice chairman Donald Kohn’s statement that the half-a-percentage point rate cut last month may be enough to keep the economy from sinking after the recent financial market turmoil.  

Meanwhile, the funds continued to buy gold in the week to Tuesday 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.

TECHNICALS

The prices closed below short term EMA, which supports bears. MACD is showing decrease in bullish momentum.  Stochastic is also supporting bears in normal region. The prices are likely to show volatile movements.

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