Bullion intraday

§ Gold rose inNew York as the dollar resumed a decline against the euro. Silver also gained. The euro climbed as much as 1.1 percent against the dollar after dropping 1.6 percent last week, snapping five consecutive gains. Gold reached a record $1,033.90 an ounce on March 17 as the euro traded at an all-time high $1.5903.

§ The market was reminded of the economy's ongoing problems when the Conference Board, a business-backed research group, said its Consumer Confidence Index plunged to 64.5 in March from a revised 76.4 in February. The reading – a five-year low -- was far below the 73.0 expected by analysts surveyed by Thomson/IFR.

§ Tight credit markets, rising prices and declining employment have consumers worrying aboaut a recession, and the stock market in turn worrying that consumers will cut back their spending and further weaken the economy.

§ Platinum futures in Tokyo gained for a third time in four trading days as the yen halted its gain and on signs demand for the metal will surpass supply as output at mines in South Africa, the world's biggest producer, may decline.

§ Platinum output is expected to lag behind demand this year, while palladium production will probably outpace it, according to Johnson Matthey Plc. The shortfall in platinum production is expected to widen to 400,000 ounces this year, from 265,000 ounces last year, according to a report last month by Standard Bank Group Ltd.



US Economy:

§ The Standard & Poor's/Case-Shiller index of home prices showed a decline of 11.4% in January, the biggest monthly drop since the index began in 1987.

§ The Conference Board's consumer confidence index dropped from 76.4 to 64.5 in March, much weaker than expected.

Currency Update:

§ StatisticsCanada reported that retail sales increased 1.5% in January to C$35.8 billion, led by automotive sales. It was the biggest monthly increase in eight months. The June Canadian dollar is steady.

MCX Gold Apr (Daily Chart)



Technical Outlook:Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower 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 at 12020-30 Target 12110 and 12160 Stop loss 11989



MCX Silver May (Daily Chart)



Technical Outlook: Momentum studies are bearish but are now at oversold levels and will tend to support reversal action if it occurs. The daily stochastics have crossed over down which is a bearish indication. The stochastics indicators are decreasing from overbought level, which is bearish and should support lower 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 at 22550 Target 22850 and 23100 stop loss 22280

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