GOLD

FUNDAMENTALS

Gold inched higher in a thin trade ahead of Thanksgiving Day holiday as weak dollar increased the attractiveness of gold’s as alternative investment, however cooling off in crude oil prices capped the gains. December gold at COMEX added $7.2 to close the session at $798.60 an ounce after hitting the highs of $805 an ounce.

Precious metals are set to extend the solid gains made in recent months, driven by rising investment demand against a backdrop of weakening dollar and the general instability in global financial markets, according to the delegates at the LBMA annual conference. Spot gold is widely expected to break its record high of $850/troy ounce before the year is out.

Production has resumed at Tanzania's Bulyanhulu Gold Mine after nearly three weeks of stalemate following a workers strike after the company hired over 500 new workers, to add to the around 800 who haven't been participating in the strike. Around 1,000 workers went on strike late last month following a breakdown of talks with management.

The pre-sales of gold bars ahead of the new Chinese lunar year is gathering momentum. The bars glitter as an investment alternative with the current state of the stock market, which is undergoing a correction, soaring property prices and relatively low bank interest rates for deposit accounts

TECHNICALS

Prices have closed above short and medium term EMAs, which supports bulls. MACD is on the verge of making bullish crossover. RSI is heading upwards in normal region. Volatile action with positive bias is likely.

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