Bullion intraday

Major Headline:

· Gold futures hit $1,000 an ounce for the first time Thursday, pushed past the benchmark by the sinking dollar and record crude oil prices.

· The dollar fell below 100 yen during Asian trading Thursday, its weakest level against the Japanese currency in 12 years. The dollar also dropped to all-time lows against the euro.

· Disappointing U.S. retail sales data and more bad news from the financial sector pushed the greenback to new lows against several major currencies, dropping below 100 yen for the first time since 1995. The Dollar Index, which tracks the dollar against six of the world's major currencies, fell 0.8% to 71.85, and hit an all-time low of 71.795 in intraday trading.

· Gold also drew support from the recent spike in oil prices, which stoked inflation fears and prompted investors to buy the precious metal to hedge against inflation.

· The price still doesn't match the all-time high of $850 in 1980, if that price is adjusted for inflation. An $850 ounce of gold then would be worth $2,177 in today's dollars. The $1,000 an ounce price, though, is still a milestone and a telling sign that investors are continuing to abandon the dollar. Gold has been pushing up against the $1,000 an ounce mark for weeks, mainly because of the weaker dollar. Interest rate cuts - and the prospect of more on the way - have weakened the currency so much that foreign investors can buy dollar-based commodities like gold and oil more cheaply.

· The dollar's decline and the boost in the price of oil price merely added the extra push.

· The Federal Reserve's meeting next week could provide more encouragement for gold prices since the Fed is widely believed to be considering cutting interest rates again. Another rate cut could reduce the dollar's value further, making gold an even better investment.

· India spot gold hits fresh record highs, breaches 13,000-rupee mark, neither jewelers nor consumers are comfortable buying the yellow metal at such elevated prices levels, There was buying seen when gold corrected to 960 usd levels but demand has dived again


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 12830 Target 12945 and 13050 Stop loss at 12795

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 26100 Target 26650 and 26790 Stop loss 25980


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