Bullion intraday

Major Headline:

· Gold and silver gave up the gains that it had made up over the past couple of days following the fed interest rate decision.

· Fed funds futures was slashed only by .75BP instead of the 1% that was widely expected.

· Investment in the StreetTracks Gold Trust surged 1.6 percent yesterday to a record 663.8 metric tons.

· Holdings in StreetTracks, the biggest exchange-traded fund backed by bullion, now ranks eighth compared to central banks.

· TheU.S. holds the most gold, with 8,133.5 metric tons in its reserves, according to data from the producer-funded World Gold Council.

· World gold-mine production declined 1.4 percent last year to 2,444 metric tons, an 11-year low, according to London-based researcher GFMS Ltd.

US Economy:

· The U.S. Census Bureau said that housing starts were at an annual rate of 1.065 million units in February, down .6% from January's pace and down 28.4% from a year ago. Building permits in February were down 7.8% from January's pace.

· The U.S. Labor Department said that producer prices were up .3% in February and up 6.4% from a year ago. Excluding food and energy costs, prices were up .5% in February and up 2.4% from a year ago.

· Both Goldman Sachs and Lehman Brothers showed earnings in the first quarter of 2008 down from a year ago, but better than expected - fairly impressive in light of yesterday's meltdown of Bear Stearns.

Currency Update:

· Statistics Canada said that consumer prices were up 1.8% in February from a year ago, down from a 2.2% gain in January. The core measure of inflation was up 1.5% from a year ago. The June Canadian dollar is trading higher.

· The U.K.'s Office for National Statistics said that consumer prices were up 2.5% in February from a year ago, up from a 2.2% gain in January. February's increase was said to be due to a new way of calculating the index. There was no actual increase in prices. The June British pound is trading higher.

· China raised the reserve requirement for its banks from 15.0% to 15.5% as part of an ongoing effort to slow inflation.


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 negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Gold April: Buy above 13065 Target 13230 and 13260 Stop loss at 13015


MCX Silver May (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 negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.

Recommendations:

MCX Silver May: Buy above 26000 Target 26550 and 26850 Stop loss 25915

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