The complex strengthened further amid speculations of QE by the Fed as well as some other central banks. Gold made new records in 4 out of the past 5 trading days with the current high at 1366. Despite correction on Thursday as investors locked in profits and financial figureheads warned against extreme weakness in the dollar, price rebounded in NY session on Friday as contraction in payrolls signaled QE in inevitable. The benchmark gold contract closed at 1345.3, gaining +2.09% on weekly basis. While the long-term trend in the yellow metal remains bullish, investors should be cautious about a correction in the fourth quarter as selloff may be severe after the FOMC meeting in November and major de-hedging activities have been completed.
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Weekly Fundamentals – Weak Payrolls Intensify QE Speculations
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