Bullion likely to gain

Sharp Surge In Gold Likely Today

Gold futures rose on Friday, as a steep fall in the dollar encouraged investors to buy the precious metal following nine straight sessions of losses, gold's longest losing streak in eight years, which had shaved off more than $90 of its value. Gold for December delivery rose $19, or 2.5%, to end at $764.50 an ounce on the Comex division of the New York Mercantile Exchange. Early Asian trades are witnessing sharp appreciation in COMEX Gold December expiry which is now at $ 788 per ounce up $ 23.

Domestic markets were not behind the COMEX and Gold futures in MCX spurred by Rs 74 to close the week at Rs 11421 per 10 grams. It will be interesting to see the moves of Gold when the contract starts today’s session, the session is likely to be positive for Gold.

In currency trading, a surprise drop in retail sales on Friday put further pressure on the dollar, with the U.S. currency already under pressure as hopes of a buyout for troubled investment firm Lehman Brothers reduced the need for risk aversion trades.