comex gold outlook

Gold fell yesterday as the recovery in dollar after the Federal Reserve held interest rates steady at 2.0 percent rather than rate cuts and also sell off from nervous Investors to cover losses.

Dollar also supported by Bloomberg report that the Federal Reserve is considering a loan package to American International Group (AIG).

Fall in crude oil price also affected the gold pieces. Oil fell sharply yesterday amid mounting concern that continued turmoil in global financial markets will further weaken fuel demand.

At the same time according to the U.S. Labor Department, the consumer price index was down .1% in August and up 5.4% from a year ago, as expected. Excluding food and energy, prices were up .2% in August and up 2.5% from a year ago.

At the same time according to the report, the U.S. trade deficit swelled to $62.2 billion, the largest since March 2007, from an upwardly revised estimate of $58.84 billion in June. Wall Street analysts had forecast the deficit to expand to $58.0 billion from the original June tally of $56.8 billion.

According to the ministry of mining in Peru, a leading global metals exporter, production rise in July from the same month a year earlier.

Peru is the world's second largest producer of copper, zinc and fifth largest in gold. It leads the world in silver production.

According to the report from The National Association of Realtors, Pending Home Sales Index, based on contracts signed in July, was down 3.2 percent to 86.5 from an upwardly revised 89.4 in June.

International spot gold traded in the range $789.70
- $771.55a Troy Ounce and last quoted at $777.55.

Weekly Outlook (DG. OCT.)

More selling pressure expecting below $789.30 .Resistances are $798, $811, $820. Supports are $779, $772.20, and $745.if sustain above $820, expecting more uptrend

Last day DGCX Gold Dec. traded in the range $793.50– $776and closed at $782.10

TECHNICAL OUTLOOK (Intra-day)

GOLD (Dec) - Bullish above $786 bearish below $ 781

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