GOLD

FUNDAMENTALS

Gold recouped all the earlier losses of the session to close with moderate gains as dollar weakened ahead of Fed minutes and crude prices bounced higher. Gold for December delivery on the COMEX added $4.6 to close at $743.1 an ounce.

The dollar weakened against major counterparts ahead of the release of the minutes of the FOMC meeting and it extended the losses after the release on concerns of further interest rate cuts. Dollar index was down 0.2% at 78.50. According the minutes of the FOMC meeting the move to cut rate by a half-point was most prudent course of action and the future actions would hinge on how the economy fared in coming weeks. It appears from the minutes to the Fed's Sept. 18 FOMC meeting that the Federal Reserve remains poised to cut interest rates again. 

The gold reserves gold receivables of euro-system decreased EUR150 million to EUR186.083 billion in the week ended Oct. 5, according to the ECB.

The pace of gold sales in Dubai slowed in September as high prices dented demand for the metal, according to media reports. Despite higher prices, the growth in the overall value of sales year-on-year was put at 13 per cent in September, down from 26 per cent growth in August due to lower volumes.

TECHNICALS

Long lower shadow of candlestick shows indecision in the market. The prices closed below short term and medium term EMAs, which supports bears. MACD is showing decrease in bullish momentum. Stochastic is also favoring bears in normal region. The prices are likely to see movements with bearish bias.

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