Sharekhan Commodities Buzz dated October 30, 2006

Gold managed to break and move above $600 an ounce following the weakness in the dollar on account of below expected Q3 US gross domestic product (GDP) numbers. Further the US trade deficit widened to $639.9 billion, taking off another 0.58% from the GDP. The growing concerns of the weakness in the dollar and the slump in the housing market would only provide support to gold during the peak demand season. Expect the yellow metal to trade firm in the months ahead and any dip could be used as a buying opportunity.

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