U.S. gold futures ended up yesterday as increased oil price, week dollar and chart-based support and also strong demand for physical bullion.
Crude-oil futures soared more than 10% Thursday, propelled up by sharp weakness in the dollar and expectations that the Organization of Petroleum Exporting Countries will deliver a significant production cut next week.
The U.S. dollar fell sharply against other major currencies Thursday, as a surge in jobless claims and other negative economic data put the greenback under heavy selling pressure. According to the report from U.S. Labor Department; jobless claims were up 58,000 last week to 573,000, the most in 26 years. The data increased the expectation of Federal Reserve to cut interest rates again
The U.S. Census Bureau said that exports fell from $155.1 to $151.7 billion in October while imports fell from $211.6 to $208.9 billion. The result was net imports of $57.2 billion, more than expected.
According to the report from National Association of Realtors, index of pending home sales was down 0.7% in October to 88.9, stronger than expected, but still a product of a weak housing market.
International spot gold traded in the range $ 833.8- $ 801.60 a Troy Ounce and last quoted at $821.45
Weekly Outlook (DG. OCT.)
Expecting weak movements below $769.Resistances are $778, $787, $803. Supports are at $758, $740, $732.
Last day DGCX Gold FEB. Traded in the range $834.7-$805 and closed at $ 823.80
