Bullion

Gold futures rose Friday as crude oil rallied sharply, and also on safe-haven buying amid the ongoing uncertainty about other financial markets. Fund buying was reported.

· Gold trades up on MCX tracing Friday's gains in international gold and oil markets. Further supporting the precious metals complex were the ongoing supply problems in South Africa and the mild fall in dollar against the euro.

· On Friday, International spot gold last traded at USD 923.20 troy an ounce, edging up by USD 11.80. It touched an all time high of USD 936.70 troy an ounce on 30th January. Meanwhile New York Mercantile Exchange (NYMEX) crude oil added more than USD 3 to settle at around USD 92 per barrel.

· On MCX, benchmark April closed near weekly high of Rs.11738 per 10 gram following continuous gains from last four days. Similarly MCX Silver march also closed near weekly high of Rs.21926 per kg .

· Bullion having strong recovery of 4% from weekly lows and indicating further bullish momentum ahead.

Indian Bullion Spot Market

Spot gold is trading firmly back above USD900 a troy ounce Friday and spot platinum continues to be supported by supply concerns stemming from power shortages inSouth Africa.

· In Mumbai markets, gold (995) elevated by Rs 80 to finish at Rs 11,710/10gm and gold (.999) by Rs 75 to finish at Rs 11,760/10g. Arrivals in gold were at 200 kilos and traded volumes at 100 kilos. Silver (.999) was up by Rs 265 to close at Rs.21,370/kg. Arrivals in silver were at 150 kilos and traded volumes at 100 kilos.

· Chennai gold (995) and gold (.999) increased by Rs 80 to finish at Rs 11,730/10gm and Rs 11,780/10gm respectively whereas Silver (.999) edged up by Rs 250 to close at Rs 20,900/kg.

· Jaipur gold standard shot up by Rs 100 to close at Rs.11,800/10gm whereas Silver (.999) rose by Rs 100 at Rs 21,200/kg.

· Ahmedabad gold (995) advanced by Rs 75 to close at Rs 11,705/10gm and gold (.999) by Rs 70 to 11,750/10gm respectively whereas Silver (.999) was up by Rs 325 to close at Rs 21,525/kg.

· In Delhi bullion markets, gold (995) rose by Rs 160 to close at Rs.11,760/10gm and gold (.999) by Rs 80 to Rs 11,820/10gm respectively whereas Silver (.999) ends Rs.21,100/kg, up by Rs 400.

MCX Gold Apr (Daily Chart)



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: Sell at 11720-730 for the target of 11640 and 11590 with stop loss at 11745



MCX Silver Mar (Daily Chart)



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 21900-930 for the target of 21890 and 21750 with stop loss at 22010

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