Bullion intraday

· MCX Gold April traded near Rs. 12068 following international trend, Silver traded more aggressive and touched contract high registered days high near Rs. 23544.

· International spot gold traded towards days high near $944.60 and spot silver traded at $18.49 per toz.

· U.S. stock futures took a turn for the worse Tuesday after the release of stronger-than-expected wholesale inflation data.

· Prior to the release of the January produce price index, S&P 500 futures were trading around 1,371 and Nasdaq 100 futures were around 1,788.

· The Dow industrials "Diamonds" ETF (DIA) was last down 0.2% at $125.33 in ahead of Tuesday's open vs. a pre-PPI data level of about $125.54.

· The U.S. Labor Department said PPI rose 1% in January, and increased 0.4% when excluding food and energy. The median estimates of economists surveyed by IFR Markets was for a headline increase of 0.3% and core growth of 0.2%. Tomi Kilgore

· Last month Eskom, the state power utility, cut all power for several days at some of the nation's largest mines. Since then the utility has allowed mines to use 90 percent of former power usage. That amount is forecast to remain for the next four years.

· Gold Fields said the power cuts will likely force it to suspend, scale back or close some of its South African functions. About 6,900 out of its total 53,000 person work force may be let go, the company said. Gold Fields said it was meeting with unions and other groups to find alternatives to layoffs, including early retirement voluntary retrenchments, contractor replacement and reassignment elsewhere within the company. The drop in production has cut into the world's supply, helping in part to boost precious

· The euro rose by more than a cent towards its all-time high against the dollar after the closely watched Ifo survey of German business sentiment came in above market expectations, further reinforcing expectations that the European Central Bank will not cut rates any time soon. Earlier in the session, the euro had come under pressure on talk the Ifo would disappoint to the downside.

· The ECB has kept its key refi rate unchanged at 4.00 pct for eight months, unlike the Federal Reserve Board and the Bank of England, both of which are cutting rates, helping to underpin the euro.

· Durable goods are expected to drop 3.5 pct in January following a 5.2 pct increase in December. Durable goods excluding transportation are expected to have dropped by 0.7 pct in January following a 2.6 pct increase in the previous month.



Indian Bullion Spot Market

Precious metals end with gains in spot markets tracing the record high touched in domestic futures market.

· In Mumbai markets, gold (995) finished at Rs 12,265 per 10 gm and gold (.999) at Rs 12,320/10gm. Silver (.999) closed at Rs 22,735/kg.

· Ahmedabad gold (995) closed at Rs 12,250/10gm and gold (.999) at Rs 12,300/10gm whereas Silver (.999) closed at Rs 23,000/kg.

· In Delhi bullion markets, gold (995) closed at Rs 12,250/10gm and gold (.999) closed at Rs 12,330/10gm whereas Silver (.999) ends at Rs 22,470/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 23300 for the target of 23800 and 24000 with stop loss at 23165

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