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Gold set for first gain in seven months


COMEX gold trades near $1220/oz and has risen over 2% so far this month. Gold is set to end the month of October with a modest gain marking its first rise since March 2018.

Gold ended its six month losing streak as sell-off in equity markets amid concerns about global economy increased safe haven demand. US DJIA index has slumped 10% from record high level set in early October entering a corrective phase.

However, the gains continue to remain restricted by firmness in US dollar. The US dollar index has hit the highest level since June 2017 as Fed's rate hike stance counters with cautious monetary policy stance of other central banks.

The key factors to look for in the near term will be US mid-term elections on November 6 and Fed's monetary policy meeting on Nov.8 which will affect US dollar and risk sentiment. Chinese President Xi Jinping and US President Donald Trump have tentatively agreed to meet on the sidelines of the G20 leaders' summit in Buenos Aires on November 30.

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