November is thanksgiving month, and Gold seems to be saying thanks in advance as it heads to the stratosphere as the dollar is being sold and buyers move money.

This isn’t news unless you’ve been hiding in a cave, but Central banks in China, Russia and other major emerging markets have indicated “interest in building their holdings of gold as part of their diversification away from the U.S. dollar,” said Nicholas Brooks, head of Research and Investment Strategy at ETF Securities. “This appears to be a structural change that may support the gold price on a medium to longer term basis.”

The above is especially crucial as the USD seems to continue its weakening trend, this according to the dollar index (DXY) which tracks the performance of the greenback against other major currencies players.

Gold moved with authority through key technical levels Tuesday, this after a statement from the International Monetary Fund stating they had sold 200 metric tons of gold to the Reserve Bank of India.

Tom Pawlicki, analyst at MF Global, said he expects “gold prices to make further upside progress over the near term.”

“Support will come from IMF sales to India, planned dehedging by Barrick, hedge-fund purchases, and technical factors,” Pawlicki wrote in a note to clients.

Barrick Gold Corp. (ABX) reduced its gold hedge by 1 million ounces in October.

Barrick plans to eliminate its remaining 1.9 million ounces in gold hedges by September 2010 because it wants to gain full leverage to the gold price on all future production based on the increasingly positive outlook for gold.

Gold may be “competing with T-bills as a place to park excess cash,” Pawlicki said. “Gold sometimes has the appearance and reputation of being a ‘risk-free’ asset.”

Gold has been a safe-haven asset, at least seemingly, as investors use the precious metal as a hedge against economic and financial turmoil.

“Central banks portray a long-term picture of things to come,” said Chintan Karnani, an analyst at Insignia Consultants in New Delhi. “If central banks are buying gold, why should retail investors be left behind?”

If this golden rally continues, gold could reach $1,200 this month.

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