GOLD
FUNDAMENTALS
Strength in dollar, slight weakness in crude oil prices and concerns over credit market turmoil pressured gold prices on Thursday. COMEX December Gold declined $27.40 washing away all the gains of the previous session to close at $787.30 an ounce.
On the currency market, the dollar rose against most of its major foreign-exchange counterparts Thursday but fell against the Japanese yen. The dollar index rose 0.3% to 76.06.
Credit crisis resurfaced again after a major U.K. bank Barclays said it was writing off $2.7 billion in the wake of subprime and related credit troubles experienced from July to October.
According to the Barrick Gold Corp., the world's largest gold producer, gold supply will fall faster than expected as it gets harder to extract the precious metal from deeper and older mines.
India's gold jewelry exports roseby 17%in the first seven months of the financial year that started in April to $3.19 billion, according to the Gem and Jewelry Export Promotion Council.
Net long positions of funds inched further higher during the week ended Tuesday according to CFTC data. Funds were net long by 222,739 lots, up from a 220,901 net long positions the previous week.
TECHNICALS
The prices have closed below short and medium term EMAs, which is a negative sign. MACD is running down in positive zone showing decreasing bullish momentum. RSI & Stochastic are falling in neutral region indicating weakness. Gold may trade volatile.
Click here to download full report
Reliance Money Disclaimer