GOLD

FUNDAMENTALS

Gold climbed further on Thursday as a record weakness in dollar, record high levels of crude and geopolitical tensions increased the investment demand for the metal. Gold for December delivery on the COMEX added $6.40 to close the session at $768.70 an ounce.

The dollar slumped after a jump in U.S. weekly jobless claims and as Bank of America's third-quarter results revived concerns about the impact of the credit crisis. The Bank of America’s profit declined 32% in the third quarter. The dollar index was down 0.7% at 77.59.

Further, geopolitical tensions led supply concerns in crude oil market took the prices to record high levels Thursday. Gold is benefited from geopolitical tensions and from high oil prices, because investors believe it acts as an inflation hedge and that it holds its value in times of economic or political distress.

Turkey’s gold imports to rose 24% to 192 tonnes in the first nine months of 2007, matching the total for the whole of last year, according to the figures from the Istanbul Gold Exchange. Turkey is the world's third biggest consumer of bullion. Though the lower demand during Ramzan, caused imports to halve in September to 13.6 tonnes, from 27.7 in August, the overall trend is very strong.

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TECHNICALS

The prices closed above short term and medium term EMAs, which supports bulls. MACD is showing increase in bullish momentum. Stochastic is running down after making bearish crossover in overbought zone. Prices are likely to move volatile with positive bias.

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