GOLD

FUNDAMENTALS

Gold futures declined for the ninth consecutive session on Thursday pressured by initial firmness in dollar and weakness in crude oil prices. Gold futures for October delivery on COMEX fell $17 to close the session at $745.50 an ounce, the lowest closing level since last October.

Dollar retreated after initial gains Thursday as weak economic data pressured the currency. The US currency however managed to climb higher against euro on worries over economic slowdown in Euro Zone. The dollar index, which measures the performance of US currency against six major currencies, was trading at 79.872, compared with 80.119 on late Wednesday.

Meanwhile, physical demand for gold in India is improving with the recent decline in the prices. The buyers are hopping on gold ahead of festive season and marriage season looking at the attractive prices.

South Africa’s gold production, slumped 16.4% on the year in July as the volume of minerals mined across the country declined, according to the government data. South Africa is one of the world's biggest producers of the precious metal. Mines across the country have been knocked by a power shortage and safety-related work stoppages in recent months. According to the Chamber of Mines, gold production in the second quarter of the year was down 10% on the year after falling almost 17% in the first three months of 2008.

TECHNICALS

The prices have closed below short term and medium term EMA which supports bears. MACD is running upwards in negative region showing decreasing bearish momentum. RSI is heading downwards in oversold region. Gold may volatile during the session.

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