Bullion intraday

· Gold, little changed in London, headed for its biggest weekly advance in 19 months as lower U.S. interest rates may revive investor demand for the metal as an alternative to the dollar. Platinum dropped from a record.

· MCC Gold April traded bullish on Friday and Saturday closed near Rs. 12104 following bullish trend during week. MCX Silver March also followed the movement and traded near Rs. 22130.

· International spot gold closed at 944.50 and silver closed at $17.99

· The dollar declined to a three-week low against the euro on speculation U.S. economic growth will slow, forcing the Federal Reserve to lower interest rates. Gold has climbed 45 percent since the Fed in August announced a policy shift to contain the subprime mortgage collapse.

· Gold imports in India, the world's biggest gold consumer, have slumped every month since October, according to figures from the Bombay Bullion Association. Gold has risen every month except November for the past seven months.

· The UBS Bloomberg Constant Maturity Commodity Index of 26 raw materials is up 14 percent this year, led by gains in lead, sugar, soybean oil and cocoa.

Indian Bullion Spot Market

Gold and Silver eased in spot markets on end of week profit booking following the huge gains recorded during the week. The underlying sentiment across the precious metals, however, continues to be bullish.

· In Mumbai markets, gold (995) and gold (.999) rose by Rs 30 to finish at Rs 12,230 per 10 gm and Rs 12,285/10gm respectively. Arrivals in gold were at 100 kilos and traded volumes were 100 kilos. Silver (.999) closed at Rs 22,540/kg, down by Rs 15. Arrivals in silver were at 150 kilos.

· Ahmedabad gold (995) rose by Rs 60 to end at Rs 12,240/10gm and gold (.999) by Rs 55 to end at Rs 12,290/10gm respectively whereas Silver (.999) closed at Rs 22,700/kg, plunging by Rs 1,050.

· In Delhi bullion markets, gold (995) increased by Rs 50 to close at Rs 12,200/10gm and gold(.999) by Rs 30 to close at Rs 12,250/10gm respectively whereas Silver (.999) declined by Rs 150 to end at Rs 22,150/kg.

MCX Gold Apr

Technical Outlook:

Momentum studies are bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Gold April: Buy at 12010-30 for target of 12210 and 12330 with stop loss at 11920

MCX Silver Mar

Technical Outlook:

Momentum studies are bullish but are now at overbought levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over up which is a bullish indication. The stochastics indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day moving average. The downside closing price reversal on the daily chart is somewhat negative.

Recommendations:

MCX Silver March: Buy at 22870 to 22900 for the target of 23300 and 23500 with stop loss at 22680

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