Bullion intraday

§ Gold rose for the second straight day inNew York as the dollar dropped against the euro. Silver also gained.

§ The euro climbed as much as 0.7 percent versus the dollar after jumping 1.5 percent yesterday. Gold reached a record $1,033.90 an ounce on March 17 as the euro traded at an all-time high of $1.5903.

§ The dollar fell against the euro today after reports showed German business confidence increased in March and orders forU.S. durable goods dropped in February, fueling speculation that interest rates in theU.S. may continue to drop while borrowing costs inEurope remain steady.

§ The Federal Reserve has cut theU.S. benchmark rate six times since September from 5.25 percent to 2.25 percent. The European Central Bank has kept its main lending rate at a six- year high of 4 percent since June.

§ Investment in Barclays Plc's iShares Silver Trust, the biggest exchange-traded fund backed by silver, has remained unchanged at a record 5,579 metric tons since March 18.

§ Investment in the StreetTracks Gold Trust, the biggest exchange-traded fund backed by bullion, is unchanged at 634 metric tons in the past two days. It reached a record 663.8 tons on March 17.

§ The U.S. Treasury, in a policy reversal, said yesterday it backed an IMF plan to sell some $98 billion in gold reserves to help make up for a decline in revenue. An advisory group recommended the sales be carried out within the quota set for annual gold sales by the Central Bank Gold Agreement, or CBGA. TheU.S. is the IMF's largest shareholder.

US Economy:

§ The U.S. Census Bureau said that new home sales were at an annual rate of 590,000 units in February, down 1.8% on the month and down 29.8% from a year ago. Even though sales were down, they were a little better than expected.

§ The U.S. Commerce Department said that durable goods orders were down 1.7% in February. Excluding transportation, orders were down 2.6%.

Currency Update:

§ The Ifo Institute's index of German business confidence increased from 104.1 to 104.8 in March, better than expected.

§ Eurostat said that its index of industrial new orders for the Euro area 15 was up 2.0% in January and up 7.3% from a year ago. The June euro is trading higher.

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 12245-30 Target 12320 and 12360 Stop loss 12210



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 23550 Target 23940 and 24160 stop loss 23415


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