By Leia Toovey- Exclusive to Gold Investing NewsGold prices stabilized in October and are recovering after the massive sell-off in September that caused prices to crash after a record high of $1923.70 an ounce on September 6. As of Friday, the yellow metal was on track to post its biggest weekly rise in 33 months as a resolution to the Eurozone debt crisis pushed the greenback lower and calmed the panic that has been permeating the markets. In September, the markets reacted to negative sentiment, spurred by the Eurozone debt crisis and weak growth numbers out of the world's two largest economies: China and the US. While remnants of this pessimism influenced the markets this month, the overall tone was positive, with the focus turning towards the solution to the Eurozone crisis, and improving economic data out of the United States. This optimism spread throughout the commodities, hedge funds increased bullish bets on commodities by the most since August, and Standard & Poor's GSCI gauge of 24 commodities has climbed 9.2 percent so far in October, putting it on track for the biggest monthly advance this year. In September, the GSCI tumbled 12 percent, the biggest loss since the financial slump of 2008. Even though gold's rally eased on Friday, from a one-month high of $1,751.99 to $1,740.19 an ounce, the metal was still on course for a gain of around 6 percent from a week earlier, the biggest one-week rise in two months. On Thursday, the metal climbed as Eurozone leaders struck a last minute deal to contain the region's debt crisis. Gold also gained strength when in the third week of the month the US released positive data regarding the health of its economy. Reports showed US housing starts jumped to the highest since April 2010 and manufacturing unexpectedly accelerated, increasing confidence that the world's largest economy will stave off a second recession. Gold's rally received extra impetus from a declining greenback. On October 27, the US dollar suffered its biggest decline in over two years with the dollar falling to a record low against the Yen. The greenback also declined against the Euro after the European debt deal sparked a relief rally. Despite gold's positive momentum, analysts were quick to point out that volumes were very low, suggesting that traders and investors are still not convinced of the precious metal's direction. The turnover of US gold futures has topped the average daily volume of 17.5 million ounces of gold on just one trading day so far this month. In contrast, gold-backed exchange-traded funds showed no major changes in the metals they held, which suggests strong investment demand.