Bullion intraday

· Gold prices surged as more poor US data weakened the dollar and as high oil prices continued to fuel inflation jitters.

· The dollar fell as US companies reportedly cut 23,000 jobs in February according to the ADP National Employment Report, leaving the job figures well below the 15,000-job increase expected. The data suggests total non-farm payrolls, due Friday from the Labour Department, fell by about 8,000 last month.

· At 1.55 pm, gold was trading at 970.10 usd per ounce against 964.95 usd in late New York trades yesterday. On Monday, the metal hit an all-time record high of 989.33 usd an ounce.

· Gold moves in line with oil prices as investors hedge against inflation, and in the opposite direction to the dollar as bullion is seen as an alternative asset. Gold's value has soared on such purchases and on safe haven buying as the global economy remains shaky and vulnerable to more weakness.

· India, the largest consumer, is entering the marriage season which is a typically strong demand period for gold, and we can expect physical buying activity during price dips that will help support prices, although any significant dollar move will be the key driver for prices

Indian Spot Bullion Market:



Gold and Silver finished down in spot markets tracing the profit booking in international markets after the recent rally.

· In Mumbai markets, gold (995) and gold (.999) was down by Rs 220 to finish at Rs 12,585 per 10 gm and Rs 12,635/10gm. Arrivals in gold were at 100 kilos. Silver (.999) closed at Rs 24,100/kg, plunging by Rs 550. Arrivals in silver were at 200 kilos.

· Ahmedabad gold (995) depleted by Rs 310 to close at Rs 12,525/10gm and gold (.999) by Rs 305 to close at Rs 12,580/10gm whereas Silver (.999) closed at Rs 24,900/kg, down by Rs 650.

· In Delhi bullion markets, gold (995) decreased by Rs 220 to finish at Rs 12,600/10gm and gold (.999) by Rs 230 to finish at Rs 12,660/10gm whereas Silver (.999) ends at Rs 24,350/kg, down by Rs 540.

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 12700 Target 12820 and 12900 Stop loss at 12665

MCX Silver May

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 May: Buy at 26350 Target 26700 and 26900 Stop loss at 26115

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